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Citi maintains Buy rating on Apollo stock ahead of investor day

EditorTanya Mishra
Published 09/11/2024, 06:21 AM
APO
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Citi has reaffirmed its Buy rating on Apollo Global Management (NYSE: NYSE:APO) with a steadfast price target of $135.00.


The upcoming investor day on October 1, 2024, marks Apollo's first since 2021 and is expected to provide a comprehensive review of the company's asset management platform, along with insights into its Athene business.


The firm anticipates that management will detail Athene's growth strategy, including potential new partnerships for annuity distribution and flow reinsurance deals.


Additionally, expectations are set for an updated spread outlook following recent balance sheet adjustments aimed at reducing interest rate sensitivity and possible restructuring of the alternative investment portfolio.


Citi analysts project that new long-term targets will be announced for key financial metrics such as fundraising, realized and unrealized income, and origination, which are believed to bolster Apollo's growth trajectory.


In other recent news, Apollo Global Management has been making strategic moves to strengthen its non-U.S. origination platform. The investment firm maintained its Buy rating and $135.00 stock price target from TD Cowen, following a partial sell-down of its stake in the Australian company, Challenger, and the acquisition of Beequip, a firm located in the Netherlands. Furthermore, Apollo was involved in a $900 million refinancing deal with Gannett Co., Inc., aimed at extending debt maturities and reducing the dilutive effect of convertible notes.


InvestingPro Insights


As Apollo Global Management (NYSE:APO) prepares for its investor day, current metrics and analyst insights from InvestingPro provide a deeper look into the company's financial health and market position. With a market capitalization of $60.79 billion and a P/E ratio of 11.48, Apollo stands as a prominent player in the Financial Services industry. The company's commitment to shareholder returns is evident, having maintained dividend payments for 14 consecutive years, with a current dividend yield of 1.73%.


While analysts have revised their earnings expectations downwards for the upcoming period and anticipate a sales decline in the current year, Apollo has been profitable over the last twelve months. The company's liquid assets also exceed its short-term obligations, indicating a strong liquidity position. It's important to note that the company's stock price movements have been quite volatile, which may be of interest to investors seeking opportunities in a dynamic market environment.


For those considering an investment in Apollo, additional InvestingPro Tips include insights on the company's high Price/Book multiple of 4.38, profitability predictions for this year, and a strong return over the last five years. In total, there are 11 additional InvestingPro Tips available that can provide further guidance on Apollo's investment potential.


For more detailed analysis and tips on Apollo Global Management, investors can explore the full suite of insights at InvestingPro.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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