UBS analyst Doug Harter has adjusted his outlook on Ares Commercial Real Estate (ACRE, Financial), reducing the price target from $5.25 to $3.75 while maintaining a Neutral rating. This revision comes as part of a broader reevaluation of commercial mortgage REITs by the firm, which has, on average, decreased price targets in this sector by 17%.
The decision reflects ongoing macroeconomic uncertainty, which UBS believes may hamper the recovery trajectory for commercial mortgage REITs. This cautious stance signals a potential delay in sector recovery as market volatility persists.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Ares Commercial Real Estate Corp (ACRE, Financial) is $5.06 with a high estimate of $5.50 and a low estimate of $4.50. The average target implies an upside of 38.32% from the current price of $3.66. More detailed estimate data can be found on the Ares Commercial Real Estate Corp (ACRE) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, Ares Commercial Real Estate Corp's (ACRE, Financial) average brokerage recommendation is currently 3.3, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Ares Commercial Real Estate Corp (ACRE, Financial) in one year is $6.75, suggesting a upside of 84.43% from the current price of $3.66. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Ares Commercial Real Estate Corp (ACRE) Summary page.
