18.5% Below Target

Ares Commercial Real Estate Corporation (ACRE) has a consensus 12-month price target of $5.25, implying 18.5% upside from $4.43. The 13 analysts covering ACRE see moderate appreciation potential.

ACRE has a consensus rating of "Buy" based on 13 Wall Street analysts. The rating breakdown is mixed, with 5 Hold ratings making up the largest segment. The consensus 12-month price target of $5.25 implies 18.5% upside from current levels.

ACRE trades at a forward P/E of 34.1821x, representing a moderate valuation. With analysts targeting $5.25 (18.5% implied move), the stock appears reasonably valued with upside.

The most bullish Wall Street analyst has a price target of $5.5 for ACRE, while the most conservative target is $5. The consensus of $5.25 represents the median expectation. Our quantitative valuation model projects a bull case target of $2 based on optimistic growth and margin assumptions. These targets typically reflect 12-month expectations.

ACRE is moderately covered, with 13 analysts providing price targets and ratings. Of these, 0 have Strong Buy ratings, 5 have Buy ratings, 5 recommend Hold, and 3 have Sell or Strong Sell ratings. Higher analyst coverage generally indicates greater institutional interest and more reliable consensus estimates.

The 12-month ACRE stock forecast based on 13 Wall Street analysts shows a consensus price target of $5.25, with estimates ranging from $5 (bear case) to $5.5 (bull case). The median consensus rating is "Buy". Our proprietary valuation model produces a base case fair value of $2, with bear/bull scenarios of $1/$2.

Our quantitative valuation model calculates ACRE's fair value at $2 (base case), with a bear case of $1 and bull case of $2. The model uses discounted cash flow analysis, historical growth rates, and margin mean-reversion to project FY+2 earnings, then applies an appropriate P/E multiple. The model confidence score is 44/100.

ACRE trades at a forward P/E ratio of 34.2x based on next-twelve-months earnings estimates. The higher forward P/E suggests near-term earnings pressure. A forward P/E is useful for comparing valuations when earnings are expected to change significantly.

Wall Street analysts are optimistic on ACRE, with a "Buy" consensus rating and $5.25 price target (18.5% upside). 5 of 13 analysts rate it Buy or Strong Buy. This information is for educational purposes only. Always conduct your own research, consider your financial situation, and consult a financial advisor before making investment decisions.

ACRE analyst price targets range from $5 to $5.5, a 10% tight range reflecting strong analyst consensus. Differences stem from varying assumptions about revenue growth, profit margins, competitive dynamics, and valuation multiples. The $5.25 consensus represents the middle ground. Our model's $1-$2 range provides an independent fundamental perspective.