
Ares Capital (ARCC) Stock Forecast & Price Target
Ares Capital (ARCC) Analyst Ratings
Bulls say
Ares Capital is the largest business development company (BDC) in the market, and its strong track record through economic cycles, leading external management platform, and high-quality portfolio position it for a premium valuation compared to its BDC peers. The company's impressive spillover taxable income provides support for its dividend in times of stress, and its recent performance has demonstrated its ability to manage risks and take advantage of potential new lending opportunities. With its access to the diversified Ares credit platform and experienced management team, Ares Capital is well-equipped to generate strong returns and support its dividend, earning an Outperform rating from analysts.
Bears say
Ares Capital is the largest Business Development Company in the US, which could be viewed as a competitive advantage, but the company's use of leverage, exposure to market downturns and its competition for capital and investments could all negatively impact its operating results. Furthermore, the recent trend towards ever-improving AI products in the software industry presents a significant risk to the company's software loan portfolio. With maturities not picking up until 2028, the risk may not be proven for some time, but a negative narrative persists until then. Finally, our downside valuation of $10 assumes significant deterioration in the company's financials, while the upside scenario assumes strong credit improvement, highlighting the volatility and uncertainty surrounding the stock.
This aggregate rating is based on analysts' research of Ares Capital and is not a guaranteed prediction by Public.com or investment advice.
Ares Capital (ARCC) Analyst Forecast & Price Prediction
Start investing in Ares Capital (ARCC)
Order type
Buy in
Order amount
Est. shares
0 shares