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Ares Stock Pops as BofA Flags “Fire Sale Opportunity” amid Private Credit Turmoil
Ares Management’s ARES +1.80% ▲ shares notched up some gains on Wednesday afternoon after the Bank of America (BofA) BAC +0.49% ▲ called the alternative asset manager’s stock a “fire sale opportunity.”
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This indicates that the banking giant sees shares in the California-based company as heavily discounted and a good **Buy **opportunity. BofA contended that returns on privately originated loans to businesses are actually performing well, with borrowers holding up on their debts.
The Wall Street bank noted that media coverage of troubles in private credit has focused on “low-value data points,” thereby opening up opportunities to buy into asset management companies. BofA believes that Ares is the best vehicle to benefit from a “return of fundamentals,” meaning a renewed focus on core business performance.
Moreover, BofA pointed out that its check-in with the private credit market indicated that the industry remains poised for a long-term structural growth trend.
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