On Oct 03, major Wall Street analysts update their ratings for $Apollo Global Management (APO.US)$, with price targets ranging from $138 to $162.
Goldman Sachs analyst Alexander Blostein maintains with a buy rating, and adjusts the target price from $135 to $148.
J.P. Morgan analyst Ken Worthington maintains with a buy rating, and adjusts the target price from $129 to $143.
Wells Fargo analyst Michael Brown maintains with a buy rating, and maintains the target price at $148.
Evercore analyst Glenn Schorr maintains with a buy rating, and adjusts the target price from $127 to $150.
TD Cowen analyst William Katz maintains with a buy rating, and adjusts the target price from $135 to $162.
Furthermore, according to the comprehensive report, the opinions of $Apollo Global Management (APO.US)$'s main analysts recently are as follows:
The company's key projections, including an average of 20% growth in fee-related earnings and 10% in spread-related earnings over the coming five years, are seen as attainable. The sentiment towards the company has become more favorable, especially with an anticipated earnings shift leaning towards asset management.
Apollo Global's recent investor day presented by the leadership team demonstrated a strategic and distinctive approach. Analysts believe that Apollo's alignment with their investors is not fully appreciated and that this aspect is highly valued by limited partners, potentially more so than by stock investors. The company's leading position in direct origination is considered significant, and it is expected that Apollo, among others, will continue to gain market share or form partnerships with banks. This is anticipated to contribute to a 20% annual growth in fee-related earnings, a 10% growth in sustained earnings, along with substantial annual net income and capital generation over the coming five years.
The company's estimates for originations seem cautious yet are bolstered by its expanding asset sourcing abilities. With the stock's current trading multiple, it continues to present an attractive growth proposition at a fair valuation. The company stands out as a favored pick within the alternative asset manager space. It is suggested that the stock's reduced valuation may not fully recognize the enduring nature of both its spread and fee-related earnings.
The firm revised its projections for Apollo Global after its Investor Day, suggesting that the guidance provided may be more conservative than anticipated and could represent a lower boundary. They anticipate a potential reassessment of the company's value as investors consider its growth prospects, changes in the composition of its business, and its valuation both on an absolute basis and relative to its peers.
Apollo Global's comprehensive Investor Day outlined key factors that support the potential for ongoing multiple expansion. The company is experiencing strong momentum, and its new five-year targets indicate a significant earnings contribution from the highly valued fee-related earnings.
Here are the latest investment ratings and price targets for $Apollo Global Management (APO.US)$ from 7 analysts:
Note:
TipRanks, an independent third party, provides analysis data from financial analysts and calculates the Average Returns and Success Rates of the analysts' recommendations. The information presented is not an investment recommendation and is intended for informational purposes only.
Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
TipRanks provides a ranking of each analyst up to 5 stars, which is representative of all recommendations from the analyst. An analyst's past performance is evaluated on a scale of 1 to 5 stars, with more stars indicating better performance. The star level is determined by his/her total success rate and average return.
