
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, reflecting an 8.2% increase from the end of the previous year, indicating robust growth. The company anticipates an improved environment for increased originations and strong long-term borrower demand for transitional, flexible capital in the commercial real estate sector, supported by favorable regulatory conditions for specialty finance lenders. Additionally, projections suggest that earnings per share (EPS) for 2025 will exceed the dividend by year-end, positioning the company for a potential dividend increase in 2026.
Bears say
Apollo Commercial Real Estate Finance Inc faces significant risks that may negatively impact its stock, including reliance on external management, which raises concerns regarding operational effectiveness and potential principal loss on loans. The company's portfolio is exposed to credit risk at both the property and borrower levels, particularly vulnerable in times of economic downturn and high unemployment, which could further erode investor confidence and reduce book value per share. Additionally, the higher interest rate environment may hinder borrowers' ability to meet payment obligations, while reliance on debt financing for leveraging investments poses risks, especially during financial market disruptions.
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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