Analyst Alexander Blostein of Goldman Sachs maintained a Buy rating on Apollo Global Management (APO – Research Report), boosting the price target to $123.00.
Alexander Blostein has given his Buy rating due to a combination of factors including Apollo Global Management’s solid key performance indicators (KPIs) and their robust inflow of funds. Despite the company’s first-quarter earnings per share (EPS) being lower than expected, primarily due to a shortfall in Spread Related Earnings (SRE), the firm’s Fee Related Earnings (FRE) remained aligned with consensus expectations. Apollo’s capital markets business had a particularly strong quarter, which helped to offset slightly lower-than-anticipated management fees. Moreover, the company’s net assets showed appreciable growth, indicating a positive financial trajectory.
Additionally, Apollo’s record origination of $40 billion, with significant contributions from its origination platforms, underscores the company’s strong operational capabilities. A substantial amount of inflows, amounting to $40 billion, with an equal split between Retirement Services and Asset Management, demonstrates Apollo’s ability to raise funds effectively. This includes a notable $13 billion from third-party fundraising. Despite the temporary setback in SRE spread, Apollo’s confidence in meeting its financial targets for the upcoming year, as well as the slight outperformance in net assets compared to estimates, provide a solid foundation for Blostein’s Buy rating.
In another report released on April 24, J.P. Morgan also maintained a Buy rating on the stock with a $123.00 price target.
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Apollo Global Management (APO) Company Description:
Apollo Global Management, Inc. engages in the provision of alternative investment management services. It operates through the following segments: Credit, Private Equity, and Real Assets. The Credit segment focuses on the investment in non-control corporate and structured debt instruments including performing, stressed, and distressed instruments across the capital structure. The Private Equity segment consists of investment in control equity and related debt instruments, convertible securities, and distressed debt instruments. The Real Assets segment includes investment in real estate equity and infrastructure equity; and real estate and infrastructure debt. The company was founded by Marc Jeffrey Rowan, Leon David Black, and Joshua Jordan Harris in 1990 and is headquartered in New York, NY.
