Ares Management price target lowered to $146 from $147 at Oppenheimer

Oppenheimer lowered the firm’s price target on Ares Management (ARES) to $146 from $147 and keeps an Outperform rating on the shares. The firm notes the company reported after-tax realized net income per share of $1.24 versus its $1.37 estimate and consensus’ $1.33. However, as is generally the case with Alt earnings, Oppenheimer really cares more about performance and fundraising metrics than the current quarter’s earnings because those will drive future earnings. The earnings “miss” for the quarter came from a $22M miss on the inherently lumpy fee related performance fees and a $21M miss on base management fees, partially offset by $28M less compensation. The firm also notes that Q1 results are often somewhat lumpy and the year’s low point for Ares.