Citizens Adjusts Price Target#
Citizens has lowered its price target for Ares Management, L.P. (NYSE:ARES) from $205 to $190. Despite this adjustment, the firm continues to rate Ares Management as a Market Outperform, indicating they believe the stock will perform better than the market average.
Reasons for the Adjustment#
The decision to reduce the price target stems from increased volatility observed in the first quarter of 2026. Citizens analyst Brian McKenna noted that the firm also revised estimates for 11 other companies in their coverage, with a general trend of lowering expectations. Overall, the median estimate change for alternative asset managers is a negative 7%, while business development companies saw a slight decrease of 0.4%.
Broader Impact on Sector#
In addition to Ares Management, Citizens has adjusted estimates for several other major firms, including Apollo Global Management and Blackstone. However, estimates for business development companies remain largely unchanged. Notably, Citizens increased estimates for OFS Credit Company and Nuveen Churchill Direct Lending, reflecting a mixed outlook across the sector.
Recent Performance of TriplePoint Venture Growth#
In related news, TriplePoint Venture Growth BDC Corp recently reported its fourth-quarter 2025 earnings, which slightly missed analyst expectations. The company reported earnings per share (EPS) of $0.25, below the anticipated $0.26, and revenue of $22.54 million, which was less than the forecasted $23.84 million. Following these results, Compass Point adjusted its price target for TriplePoint from $7.50 to $5.75, citing valuation concerns and potential future credit losses. This highlights the ongoing challenges faced by companies in the current market environment.