The Carlyle Group LP (CG) PT Raised to $41 at Citi, Downgrades to Neutral

Citi analyst Chris Allen raised the price target on The Carlyle Group LP (NASDAQ: CG) to $41.00 (from $40.00) while downgrading to a Neutral rating (from Buy)

The analyst comments "For both companies we are lowering forward estimates as we have tempered timing/expectations for both fundraising and monetization/deployment. After increasing PTs as we roll forward valuation to our refreshed estimates, we see more balanced risk/reward at current levels and less relative upside vs. peers given relative outlooks for FRE growth thru 2025 (forecasting avg. growth of 21% across alts. vs. 16%/11% at BX/CG). Looking at BX, we have lowered expectations in the real estate (demand still challenged and mixed deployment opptys.) and private equity segments (pushed out fundraising/monetization expectations). Long-term we continue to see BX as exceptionally well positioned given its scale/product mix/distribution channel penetration but prefer to wait for a better entry point. For CG, we see a more challenged PE outlook here relative to peers which could limit upside even as the outlook/trajectory for credit is improving and investment solutions remain solid."

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