Apollo Global Management (APO) Remains Neutral at Goldman Sachs

Goldman Sachs maintained a Neutral rating on Apollo Global Management (NYSE: APO) with a modified price target of $25.00 (from $27.00). Analyst Marc Irizarry thinks shares will trade range bound,

"APO is tapping important growth drivers: credit product and growth of alternative assets supported by global bank deleveraging and shifts in the regulatory landscape. New distribution channels are driving demand (HNW contributed nearly ½ of the $1.5 bn raised YTD for Credit Opps Fund III). In PE, ~15% of Fund VIII is already deployed/ committed - even as APO stays disciplined on valuation (average entry multiple of 5-7x vs. industry at 9-10x). Fundraising in credit and capital deployment buffer pressure on AuM from exits ($0.31 realized carry in 3Q to date). That said, the firm’s net accrual shrunk in 2Q (on higher accrued comp and harvesting) and after averaging 33% in the past 3 years, feeearning AuM growth has leveled off more recently. The stock has lagged YTD and expectations are lower, but we see shares staying range bound," said Irizarry.

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 $25.25 yesterday.

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