
ACRE Stock Forecast & Price Target
ACRE Analyst Ratings
Bulls say
Ares Commercial Real Estate Corp is positioned well due to an improving environment for increased loan originations, highlighting potential growth opportunities within the commercial real estate market. The company benefits from strong long-term borrower demand for transitional and flexible capital, which bodes well for sustained revenue generation. Additionally, the favorable regulatory backdrop for specialty finance lenders enhances Ares' competitive advantage, while its valuation at 0.74x the peer average suggests it may be an attractive investment relative to its industry counterparts.
Bears say
Ares Commercial Real Estate Corp faces a negative outlook primarily due to the significant credit risk it retains on the loans it originates, which may lead to substantial earnings volatility amid a weakening commercial mortgage credit environment. The company's financial forecasts hinge on expectations of a portfolio run-off trough in the third quarter, followed by anticipated portfolio growth; however, the uncertainty surrounding this growth amidst challenging macroeconomic conditions raises concerns. Additionally, prevailing high interest rates further complicate the landscape for legacy commercial real estate credit, contributing to a cautious industry perspective on 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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