Donald Fandetti, an analyst from Wells Fargo, reiterated the Sell rating on Ares Commercial (ACRE – Research Report). The associated price target remains the same with $5.50.
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Donald Fandetti has given his Sell rating due to a combination of factors impacting Ares Commercial Real Estate Corp. Despite reporting distributable earnings per share that exceeded expectations, the company still faces a challenging market environment. The stability in credit migration is a positive sign, but it is not enough to offset the broader challenges.
Ares Commercial has made strides in improving liquidity and reducing leverage, as evidenced by significant loan repayments and a decrease in outstanding principal. However, the company’s current valuation does not present compelling value compared to other opportunities in the market. As a result, Fandetti maintains an Underweight rating, suggesting that investors may find better returns elsewhere.
According to TipRanks, Fandetti is a 5-star analyst with an average return of 11.7% and a 65.95% success rate. Fandetti covers the Financial sector, focusing on stocks such as Capital One Financial, Discover Financial Services, and Synchrony Financial.