5. Apollo Global Management, Inc. (NYSE:APO)
Forward P/E as on February 28: ~17.8x
10-Year Sales Growth: ~32.6%
Number of Hedge Fund Holders: 90
Apollo Global Management, Inc. (NYSE:APO) is a private equity firm that specializes in investments in credit, private equity, infrastructure, secondaries and real estate markets. Morgan Stanley analyst Michael Cyprys maintained a “Hold” rating on the company’s stock, setting a price target of $170.00. The rating is backed by factors associated with the announcement where the company and Bridge Investment Group have entered into a definitive agreement for Apollo Global Management, Inc. (NYSE:APO) to acquire Bridge in an all-stock transaction with an equity value of ~$1.5 billion.
As per the analyst, the acquisition is expected to improve Apollo Global Management, Inc. (NYSE:APO)’s real estate capabilities significantly. Furthermore, while the acquisition can enhance the company’s origination capabilities and can benefit Athene via potential synergies, the overall impact on Apollo Global Management, Inc. (NYSE:APO)’s financial performance remains to be fully realized. Bridge manages ~$50 billion of high-quality AUM in real estate products and targets both institutional and wealth clients. The transaction is projected to be immediately accretive to Apollo Global Management, Inc. (NYSE:APO)’s fee-related earnings upon closing.
Baron Funds, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Alternative asset manager Apollo Global Management, Inc. (NYSE:APO) contributed to performance. The company held a well-received Investor Day during which management highlighted the firm’s expansive credit management capabilities and introduced bullish five-year growth targets. Apollo also participated in the broader rally of financial stocks spurred by the Republican elections sweep, which has bolstered expectations for greater capital markets activity and looser regulations. Investors expect a more business-friendly administration will support growth initiatives for alternative managers, including plans to introduce private investments into retirement accounts. Finally, Apollo was added to the S&P 500 Index during the quarter, which prompted passive buying of the shares. We remain invested due to Apollo’s long-term growth prospects, formidable competitive advantages, and strong management team.”
