Ares Capital's fair value estimate has been reduced from about $22.64 to roughly $20.77 in one model, reflecting more cautious analyst sentiment. Wells Fargo downgraded the stock to Equal Weight from Overweight and lowered its price target to $19 from $20, citing richer valuations and limited upside. Other firms including B. Riley, Citizens, and Keefe Bruyette also trimmed their price targets, while Wells Fargo highlighted risks that continued non-accruals and restructurings could pressure net operating income and dividend coverage. The revised fair value model assumes revenue growth of about 1.55%, down from 3.42%, a net profit margin of roughly 46.99%, up from 44.58%, a future P/E of about 13.51 times, down from 17.46 times, and a discount rate of roughly 9.24%, down from 9.80%.
Ares Capital CorporationMultiple analysts cut price targets and fair value estimate, citing limited upside and risks to earnings and dividend coverage.
Wells Fargo & Company