UPDATE: Goldman Sachs Starts TPG Inc. (TPG) at Neutral

Goldman Sachs analyst Alexander Blostein initiates coverage on TPG Inc. (NASDAQ: TPG) with a Neutral rating and a price target of $34.50.

The analyst comments "With ~$110bn AUM (~$60bn in fee-earning AUM), we view TPG as a premier Alternative Asset Manager, well-positioned for growth from both secular tailwinds in private markets and idiosyncratic dynamics, including a material step-up in TPG's earnings power amid the upcoming round of flagship fund-raising cycle, leading investment performance with a history of successful step-out strategies, FRE margin expansion and new initiatives. We expect the combination of these factors to drive 17% EPS (DE basis) CAGR and >20% FRE (fee-related earnings before SBC) CAGR from 2021-2024E. That said, following 11% stock price appreciation since January 2022 IPO, TPG trades at a healthy premium to peers of 17X 2023 P/DE (net of SBC) -- which implies P/FRE of 21X and 23X (net of SBC) on 2023 and 2024, respectively, relative to CG's and KKR's (which we view as closest peers to TPG) implied P/FRE in the mid-to-high-teen range in 2023/2024, leaving limited relative upside to the stock vs. our Buy-rated names."

For an analyst ratings summary and ratings history on TPG Inc. click here. For more ratings news on TPG Inc. click here.

Shares of TPG Inc. closed at $33.08 yesterday.

You May Also Be Interested In

• JD.com (JD) Reiterated at Buy by Benchmark Amid Earnings Recovery
• Sinda raises $331M in IPO, reports Q2 net loss of $16.6M
• Bernstein SocGen Group Reiterates Outperform Rating on JD.com, Inc (JD), 'very cheaply valued'