Apollo Global Management: Buy Rating Justified by Strong Momentum and Ambitious Five-Year Targets

In a report released yesterday, Michael Brown from Wells Fargo maintained a Buy rating on Apollo Global Management (APO – Research Report), with a price target of $148.00.

Michael Brown has given his Buy rating due to a combination of factors following Apollo Global Management’s Investor Day. The event highlighted the company’s strong momentum and set ambitious five-year targets that suggest a significant earnings boost from fee-related earnings (FRE). Brown’s optimism is also fueled by Apollo’s sustained outperformance, with a 23.7% increase in stock price that eclipses the S&P 500’s growth, hinting at a potential for further multiple expansion given the company’s robust long-term earnings per share growth profile and favorable shift towards higher-valued FRE.

Moreover, the new five-year targets are in line with previous expectations, with notable projections for FRE growth surpassing market predictions. The upward revision of Apollo’s price target from $132 to $148 is primarily due to a higher multiple assigned to fee-related earnings, reflecting both a market-wide increase in multiples and Apollo’s better-than-expected FRE growth outlook. Brown’s assessment indicates that despite recent price gains, there is still considerable upside for Apollo’s stock, justifying the Buy rating.

In another report released today, Barclays also maintained a Buy rating on the stock with a $128.00 price target.

Based on the recent corporate insider activity of 66 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of APO in relation to earlier this year.

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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.