The Carlyle Group LP (CG) PT Cut to $17 at UBS; 'Buy' Kept

UBS analyst Brennan Hawken lowered his price target on The Carlyle Group LP (NASDAQ: CG) to $17.00 (from $25.00) but maintains a Buy rating following Q4 results.

Hawken commented, "CG reported 4Q15 ENI per unit of $0.24, below our estimate of $0.38 and consensus of $0.31 per share. However, results included a $50 million legal reserve, which if excluded results would have been in line with our estimate. Carlyle also announced a unit repurchase authorization of $200 million that will focus primarily on public units and should provide support for the shares. Importantly, comp expense for the full year was down and non-comp was roughly flat, demonstrating management's efforts to improve FRE through operational efficiencies, rather than simply relying on the topline. As a result, the company expects quarterly FRE to be in the mid-$40 million range in 2016 despite revenue headwinds, which we view positively."

For an analyst ratings summary and ratings history on The Carlyle Group LP click here. For more ratings news on The Carlyle Group LP click here.

Shares of The Carlyle Group LP closed at $11.86 yesterday.

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