Ares Commercial price target lowered to $5.50 from $7 at Wells Fargo

Wells Fargo lowered the firm’s price target on Ares Commercial (ACRE) to $5.50 from $7 and keeps an Underweight rating on the shares. The firm notes Ares reduced its dividend by 40% to 15c per quarter. Book value declined 4% quarter-over-quarter. Positively, the company has reduced debt with elevated repayments, Wells adds. Its focus is on resolving 4 and 5 rated loans, though this balance increased quarter-over-quarter.