Raymond James Starts Ares Management (ARES) Coverage, Highlights Strong Fee-Based Model

Ares Management Corporation (NYSE:ARES) ranks among the best growth stocks to buy for the next 10 years. On July 28, Raymond James began coverage of Ares Management Corporation (NYSE:ARES) with a Market Perform rating. While the firm highlighted Ares’ robust direct lending position and growth prospects as advantages, it also pointed out that there were no immediate catalysts for the stock.

According to Raymond James, Ares Management Corporation (NYSE:ARES) is reasonably valued at its current price-to-earnings multiple of 32x next-twelve months, which is higher than the 20x anticipated P/E average for the alternative asset management industry in 2026. The firm claims that Ares’ purely fee-based business model, which has little balance sheet exposure and a better growth trajectory than its peers, justifies the premium valuation.

Raymond James emphasized Ares’ guidance for fee-related earnings through 2028, which are expected to improve at a compound annual growth rate of 16–20%. As the company deploys about $81.5 billion in committed assets that do not currently generate fees, additional margin gains are projected.

Ares Management Corporation (NYSE:ARES) is an alternative asset management with operations in Asia, Europe, and the United States. The company is divided into different divisions, including the Real Estate Group, the Private Equity Group, the Direct Lending Group, and the Tradable Credit Group.

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Disclosure: None.