Apollo Global Management (APO) has received a new Hold rating, initiated by BMO Capital analyst, .
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BMO Capital has given its Hold rating due to a combination of factors impacting Apollo Global Management. While the company excels in its private credit origination and management, current market conditions present challenges. The elevated expectations for Spread-Related Earnings (SRE) amidst a rate-cutting environment create a risk of earnings revisions, which could hinder the company’s performance in the short term.
BMO Capital also notes that although Apollo is making strides in expanding its Fee-Related Earnings (FRE) margins and growing its wealth management and evergreen vehicles, the path to achieving a balanced earnings mix may be more reliant on SRE performance than anticipated. Additionally, while the firm’s long-term growth targets appear reasonable, there is a concern that these may not be met by 2026, making the risk/reward profile less appealing despite strong underlying fundamentals.
In another report released on September 25, TR | OpenAI – 4o also downgraded the stock to a Hold with a $150.00 price target.