
ARI Stock Forecast & Price Target
ARI Analyst Ratings
Bulls say
Apollo Commercial Real Estate Finance Inc. reported a total committed loan portfolio of $7.7 billion as of March 31, marking an 8.2% increase from the end of December, indicating robust growth in its financing activities. The company anticipates improved borrower demand for transitional capital in the commercial real estate sector, coupled with a favorable regulatory environment for specialty finance lenders, which supports the potential for increased originations. Looking ahead, expectations for earnings per share to surpass dividend levels by the end of 2025 suggest a possible dividend increase in 2026, contributing to a positive long-term financial outlook for the firm.
Bears say
Apollo Commercial Real Estate Finance Inc faces a challenging outlook primarily due to significant credit risks associated with its portfolio of loans, which may result in material losses and diminished earnings during economic downturns. The company's reliance on external management raises concerns about operational effectiveness, especially given that any principal loss could negatively impact shareholder value and investor confidence in loan underwriting practices. Additionally, the rising interest rates present a dual threat by potentially hindering borrowers’ ability to meet interest payments while also affecting the value of the underlying commercial real estate assets.
This aggregate rating is based on analysts' research of Apollo Commercial Real Estate Finance and is not a guaranteed prediction by Public.com or investment advice.
ARI Analyst Forecast & Price Prediction
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