On Monday, TD Cowen demonstrated confidence in Apollo Global Management (NYSE:APO), a leading asset management firm, by increasing its price target for the company's shares. The target has been raised to $137.00 from the previous $136.00, while the firm's Buy rating remains unchanged. The company's shares are traded on the New York Stock Exchange under the ticker NYSE:APO.
Apollo's current market environment, characterized by persistently high interest rates, is seen as beneficial for the company's operations, especially its insurance platform. The analyst from TD Cowen pointed out that the prolonged period of higher rates is expected to positively impact Apollo's performance.
The analyst's optimism also extends to Apollo's future prospects, citing the upcoming investor day in October as a potential catalyst. During this event, Apollo's management is anticipated to present a strategy to double its earnings per share (EPS) to over $9 by the year 2026.
This price target adjustment reflects a mere $1 increase from the previous target, suggesting a steady, rather than a dramatically improved, outlook for Apollo.
Investors and market watchers will likely keep a close eye on Apollo's performance and the forthcoming investor day presentation, as they may provide further insights into the company's ability to achieve its ambitious earnings goals.
InvestingPro Insights
TD Cowen's revised price target for Apollo Global Management comes at a time when Apollo's stock has seen a high return over the last year, with a 92.36% one-year price total return. The company's robust performance is also reflected in its substantial revenue growth, with the last twelve months as of Q4 2023 showing a 194.58% increase. This aligns with Apollo's objective to double its EPS by 2026, a goal that seems plausible given its current trajectory.
InvestingPro Tips highlight Apollo's status as a prominent player in the Financial Services industry and its history of maintaining dividend payments for 14 consecutive years, which could be of interest to income-focused investors. Additionally, Apollo's liquid assets exceed its short-term obligations, indicating a strong liquidity position.
With an adjusted P/E ratio of 13.63, Apollo trades at a multiple that suggests investors are recognizing its earnings potential. Moreover, the company is trading near its 52-week high, at 98.39% of the peak value, showing market confidence in its prospects.
For those seeking deeper insights and additional analysis, InvestingPro offers a comprehensive list of tips, including Apollo's volatility and high Price / Book multiple. To access these insights and more, visit InvestingPro and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 13 additional InvestingPro Tips available that could further inform investment decisions regarding Apollo Global Management.
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