The deal talks between the global investment company Carlyle Group (NASDAQ:CG) and Veritas Capital over Cotiviti have ended. Cotiviti, a tech-based healthcare company, was taken private by Veritas in 2018. Meanwhile, Carlyle was in discussion with Veritas about acquiring a 50% stake in Cotivity.
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According to a Reuters report, the deal talks ended on valuation grounds. The report highlighted that Carlyle offered to pay $15 billion to Veritas to buy a stake in Cotivity. However, Carlyle is not ready to continue with the same valuation due to the deterioration in the macro environment.
While its Cotivity deal failed to take shape, Carlyle is set to report its first quarter financials on Thursday, May 4, 2023.
Wall Street analysts expect Carlyle to post revenues of $853.61 million in Q1 of 2023. The company has exceeded analysts’ sales forecasts in three of the last four quarters. Meanwhile, analysts expect CG to report earnings of $0.75 a share, reflecting a slight increase over the prior-year quarter.
Is Carlyle Group a Good Stock to Buy?
The ongoing macro headwinds and economic uncertainty have made it tough for investment companies to raise funds. Moreover, volatility in the market is negatively impacting investment income, which is why analysts are cautiously optimistic about Carlyle Group stock.
It has received eight Buy, two Hold, and one Sell recommendations for a Moderate Buy consensus rating. These analysts’ average price target of $44.18 implies 46.73% upside potential from current levels.
