
ACRE Stock Forecast & Price Target
ACRE Analyst Ratings
Bulls say
Ares Commercial Real Estate Corp is positioned favorably due to an improving environment for increased loan originations and robust long-term demand for transitional capital within commercial real estate. The company anticipates a stabilization in portfolio run-off by mid-year, followed by a notable increase in investment opportunities in the latter half of the year. Additionally, Ares's current share valuation at 0.54 times book value compared to the 0.76 times average among peers, combined with its competitive 11.2% dividend yield, reinforces a positive outlook for the company's financial performance.
Bears say
The negative outlook on Ares Commercial Real Estate Corp stems from concerns related to a potential deterioration in commercial mortgage credit performance, which poses a direct risk to earnings due to the company's retained credit risk on originated loans. Furthermore, the company's forward estimates for 2025-2026 have been downgraded, reflecting anticipated declines in loan originations and increased repayment rates alongside slightly elevated current expected credit loss (CECL) reserves. Lastly, the overall sentiment within the commercial mortgage REIT sector remains cautious due to macroeconomic challenges, particularly rising interest rates, which have led to a re-evaluation of projected losses within the industry.
This aggregate rating is based on analysts' research of Ares Commercial Real Estate and is not a guaranteed prediction by Public.com or investment advice.
ACRE Analyst Forecast & Price Prediction
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