Ares Capital: Wait For A Drop (Rating Downgrade)
Portfolio Pulse from
Ares Capital achieved its highest portfolio value in Q4'24, driven by strong net investment income and demand for new net originations. Despite a slight increase in non-accruals, it maintained a strong balance sheet and dividend coverage. However, its shares are slightly overvalued at a price-to-NAV ratio of 1.18X.
February 22, 2025 | 6:45 am
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Ares Capital's portfolio value reached a record high in Q4'24, supported by strong net investment income and demand for new originations. Despite a slight rise in non-accruals, the balance sheet remains strong with a well-covered dividend. However, shares are slightly overvalued at a 1.18X price-to-NAV ratio.
The article highlights Ares Capital's strong financial performance and balance sheet, but notes that the shares are slightly overvalued. This could lead to a short-term price decline as investors may wait for a more attractive entry point.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100