
Ares Capital (ARCC) Stock Forecast & Price Target
Ares Capital (ARCC) Analyst Ratings
Bulls say
Ares Capital is supported by its market-leading scale, diversified Ares Credit Group platform, and experienced management team, which have historically allowed it to source attractive opportunities and navigate downturns with discipline. Its quarter showed strong fundamentals, including a $29.50bn investment portfolio, 10.3% weighted-average yield, $763mn of total investment income, and better-than-expected net additions of $70mn, while fully committed revolvers and no mark-to-market provisions reinforce funding stability. Although non-accruals rose to 2.1% and software exposure remains an overhang, the portfolio appears resilient, with about 85% of software loans rated low risk and average LTV near 41%, supporting confidence in above-peer returns.
Bears say
Ares Capital is facing a weaker fundamental setup as 1Q26 core EPS of $0.47 missed expectations, GAAP net income per share was only $0.13, and unrealized losses pressured earnings quality. NAV per share declined to $19.59, down 1.8% sequentially, while estimates were trimmed to $1.89 for 2026 as slower near-term investment activity, modestly lower leverage, and higher funding costs signal margin compression. Although spread expansion and lender-friendly conditions could help, the outlook remains cautious because credit deterioration, wider spreads, and volatile leveraged-loan valuations could further erode NII and portfolio value.
This aggregate rating is based on analysts' research of Ares Capital and is not a guaranteed prediction by Public.com or investment advice.
Ares Capital (ARCC) Analyst Forecast & Price Prediction
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