, an analyst from BMO Capital, has initiated a new Buy rating on Carlyle Group (CG).
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BMO Capital’s rating is based on several compelling factors that highlight Carlyle Group’s potential for sustained growth and market outperformance. The firm has demonstrated strong momentum in its Alpinvest platform and interval funds, which have become central to its growth strategy. These platforms are benefiting from favorable trends in the secondaries market and increased adoption in the wealth channel, leading to significant improvements in scale and margins. With Alpinvest’s FRE up over 80% year-to-date, Carlyle’s leadership and innovative approach position it well for continued growth.
BMO Capital also notes Carlyle’s impressive fundraising momentum, which is on track to surpass its $50 billion target for 2025. Despite challenges in the private equity sector, Carlyle has effectively returned capital to investors and maintains a substantial amount of dry powder, ready to capitalize on future opportunities. Furthermore, Carlyle’s stock is currently trading at a discount compared to its peers, providing a potential upside as the market begins to recognize the durability of its growth drivers. As these factors continue to play out, BMO Capital anticipates a re-rating of Carlyle’s stock, making it an attractive investment opportunity.
In another report released on September 18, Citizens JMP also reiterated a Buy rating on the stock with a $75.00 price target.