Analyst Michael Cyprys from Morgan Stanley maintained a Buy rating on TPG (TPG – Research Report) and keeping the price target at $80.00.
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Michael Cyprys has given his Buy rating due to a combination of factors that point to TPG’s strong growth prospects and strategic positioning. The company is on track to potentially double its assets under management (AUM) to approximately $500 billion within the next several years. This growth is underpinned by both organic strategies, such as the scaling of existing campaigns and step-out strategies, as well as inorganic initiatives like acquisitions and insurance partnerships.
Moreover, TPG’s business model is capital light and offers a high-quality earnings stream, with about 80% of its pre-tax income derived from fee-related earnings (FRE). The firm is well-positioned to benefit from a recovery in capital markets, with expected significant growth in transaction and performance fees. Additionally, TPG’s recent acquisition of Angelo Gordon enhances its ability to tap into private credit and infrastructure growth opportunities, further differentiating it from its peers. These factors, combined with a robust dividend policy, make TPG an attractive investment opportunity.
Cyprys covers the Financial sector, focusing on stocks such as Charles Schwab, BlackRock, and Tradeweb Markets. According to TipRanks, Cyprys has an average return of 6.4% and a 56.72% success rate on recommended stocks.
In another report released yesterday, Wells Fargo also reiterated a Buy rating on the stock with a $78.00 price target.