ARES removal from Goldman’s Conviction List follows Oppenheimer trimming its price target to $146 after Q1 earnings miss.
Goldman Sachs removed Ares Management (NYSE:ARES) from its US Conviction List in a June 1 update. The move follows Oppenheimer cutting its price target on ARES to $146 from $147 on May 4 while maintaining an Outperform rating.
ARES reported Q1 after-tax realized net income per share of $1.24, below Oppenheimer’s $1.37 estimate and the consensus $1.33. The earnings miss stemmed from a $22M shortfall in fee-related performance fees and a $21 million miss on base management fees, partially offset by $28 million lower compensation.
Oppenheimer noted Q1 is typically the year’s low point for ARES, emphasizing performance and fundraising metrics over quarterly earnings volatility.