
ACRE Stock Forecast & Price Target
ACRE Analyst Ratings
Bulls say
Ares Commercial Real Estate Corp is positioned to benefit from an improving environment for increased loan originations, particularly in the transitional and flexible capital sectors of commercial real estate. The company anticipates a rebound in portfolio activity, with expectations for a significant uptick in originations during the latter half of the year. Additionally, the stock's trading at 0.54 times book value compared to a peer average of 0.76 times, coupled with a competitive dividend yield of 11.2%, underscores its attractive valuation relative to industry benchmarks.
Bears say
Ares Commercial Real Estate Corp faces a negative outlook primarily due to a significant weakening in commercial mortgage credit performance, which impacts its earnings potential as the company retains credit risk on originated loans. The forward estimates for 2025-2026 have been revised downward, reflecting a decrease in loan originations and an increase in repayments, coupled with higher near-term CECL reserves. Additionally, the challenging macroeconomic environment, particularly concerning interest rates, continues to foster caution within the commercial mortgage REIT sector.
This aggregate rating is based on analysts' research of Ares Commercial Real Estate and is not a guaranteed prediction by Public.com or investment advice.
ACRE Analyst Forecast & Price Prediction
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