Goldman Sachs Downgrades Apollo Global Management (APO) to Neutral

June 1, 2012 7:49 AM EDT
Get Alerts APO Hot Sheet
Price: $20.80 -1.89%

Rating Summary:
    17 Buy, 5 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 23 | Down: 34 | New: 34
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Goldman Sachs downgraded Apollo Global Management (NYSE: APO) from Buy to Neutral with a price target of $14 (down from $19) on fee pressure, ENI mix in market volatility.

"APO derives relatively less of its earnings from recurring management fees while its PE portfolio carries the most mark-to-market risk with 64% of investments publicly traded," the analyst commented. They also see fee rate pressure in the Capital Markets segment as acquisitions have shifted the business mix toward lower-fee CLOs.

Goldman lowered 2012/2013/2014 EPS estimates to $2.61/$2.56/$3.04 from $2.95/$2.77/$2.78 on negative 2Q12 portfolio marks.

For an analyst ratings summary and ratings history on Apollo Global Management click here. For more ratings news on Apollo Global Management click here.

Shares of Apollo Global Management closed at $11.67 yesterday.

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