Michael Brown, an analyst from Wells Fargo, reiterated the Buy rating on TPG (TPG – Research Report). The associated price target was raised to $56.00.
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Michael Brown has given his Buy rating due to a combination of factors that highlight TPG’s potential for growth and recovery. Despite some weaker elements in the first quarter results, such as shortfalls in fundraising and fee-related assets under management, TPG’s management provided reassuring commentary and reaffirmed guidance, which helped offset these concerns. The firm’s ability to raise significant capital in the coming year, with expectations of increasing from $30 billion in 2024 to around $37 billion, demonstrates strong fundraising capabilities.
Furthermore, the recent acquisition of Peppertree is viewed positively, as it contributes to immediate accretion to fee-related earnings and earnings per share, alongside enhancing TPG’s diversification strategy. The acquisition is expected to support TPG’s search for an insurance partner, which could further strengthen its position. Additionally, TPG’s superior brand, scale, and performance differentiate it in the private equity sector, providing a solid foundation for future growth. While earnings per share estimates have been slightly reduced, the overall sentiment and market conditions have improved, leading to an increased price target from $52 to $56.
In another report released on May 1, UBS also maintained a Buy rating on the stock with a $62.00 price target.
TPG’s price has also changed moderately for the past six months – from $66.430 to $46.260, which is a -30.36% drop .