In a report released yesterday, Craig Siegenthaler from Bank of America Securities reiterated a Buy rating on Apollo Global Management (APO – Research Report), with a price target of $189.00.
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Craig Siegenthaler’s rating is based on several factors, including Apollo Global Management’s mixed financial results, which showcased stronger-than-expected management and performance fees despite shortcomings in fundraising and strategic retirement expenses. The firm anticipates a 15-20% growth in fee-related earnings (FRE) in 2025, which is slightly below its five-year guidance due to the absence of a major fundraising initiative expected in 2026. However, the prospect of sustained higher interest rates is seen as beneficial for Apollo, as it could enhance its strategic retirement expenses spread and private credit returns.
Craig also highlights that Apollo is likely to engage more actively in mergers and acquisitions following its Argo acquisition, targeting areas with growth potential and filling product gaps in hybrid and real assets. Despite revising down earnings per share forecasts due to lower strategic retirement expenses expectations, the firm still projects to meet its long-term growth targets. The price objective of $189 suggests a 17% potential total return, driven by growth visibility and the advantages of high interest rates, further supporting the Buy rating.
In another report released today, Barclays also maintained a Buy rating on the stock with a $196.00 price target.