UBS Says Market May View Apollo Global Management's (APO) Repurchase Plan Positively - Reiterates Buy
UBS maintained a Buy rating on Apollo Global Management (NYSE: APO), and cut the price target to $14.00 (from $23.00), following an announced $250 million share repurchase program. UBS believes that the market may view repurchases more positively once actually executed.
Analyst Brennan Hawken commented, "APO announced a $250 million (roughly 5% of APO's market cap) share repurchase plan ($150 million open market and $100 million to repurchase share-based comp), sending a strong signal that management views the shares as undervalued, despite the inherent tradeoff with float/liquidity. While APO is not in the market yet and the stock did not react positively today, we believe the market may view repurchases more positively once actually executed, rather than putting the cart before the horse."
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Shares of Apollo Global Management closed at $12.73 yesterday.