
Ares Capital (ARCC) Stock Forecast & Price Target
Ares Capital (ARCC) Analyst Ratings
Bulls say
Ares Capital Corp has demonstrated a positive trajectory in net asset value (NAV) per share, which increased by 0.4% sequentially and 1.5% year-over-year, reaching $19.90, indicating strong underlying performance. The company is strategically positioned to benefit from a rising interest rate environment, which could enhance net investment income and overall profitability. Despite a slight increase in non-accruals, the underlying credit quality remains robust and is well below historical averages, suggesting a stable investment foundation.
Bears say
Ares Capital faces a negative outlook due to concerns over poor underwriting practices, which could erode confidence among liquidity supporters, potentially jeopardizing its funding stability. The company's reliance on floating-rate loans, particularly those indexed to LIBOR with floors, presents a vulnerability as a 100 basis point increase in rates would lead to a decline in net investment income, adversely affecting profitability. Additionally, with structuring fees accounting for approximately 10-15% of revenues, any significant downturn in deal activity could further threaten earnings and exacerbate financial challenges.
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