Apollo Global Management Shows Strength in Retirement Services and Private Wealth, According to Wells Fargo Analyst

By Don Francis, Editor
February 10, 2024 11:29 AM UTC
Apollo Global Management Shows Strength in Retirement Services and Private Wealth, According to Wells Fargo Analyst

Wells Fargo's Timothy O'Shea raised their price target on Apollo Global Management (NYSE: APO) by 7.3% from $110 to $118 on 2024/02/09. The analyst maintained their Strong Buy rating on the stock.

According to the analyst, Apollo Global Management continues to exhibit strength in origination and flows in the retirement services channel, along with good early showings for its private wealth product suite. This assessment comes after the company released its Q4 and FY 2023 report on February 8, 2024.

In the fourth quarter of 2023, Apollo Global Management reported earnings per share (EPS) of $1.91, beating the Zacks Consensus Estimate of $1.51 and surpassing Q4 2022's $1.42 by 34.5%. However, the company's revenue for the quarter fell short of the Zacks Consensus Estimate of $823.27M, coming in at $795M. Nevertheless, it represented a 9.1% increase over Q4 2022's $729M.

For the full year 2023, Apollo Global Management reported EPS of $6.74, a 24.4% increase over FY 2022's $5.42. The company also recorded revenue of $3.16B, which surpassed FY 2022's $2.62B by 20.8%.

In their press release and earnings call, Apollo Global Management's management did not provide financial guidance. However, CEO Marc Rowan expressed satisfaction with the company's performance in a volatile market backdrop in 2023. Rowan highlighted exceptional results, including Fee and Spread Related Earnings growth exceeding 25% and nearly $160B of inflows. Looking ahead to 2024, the company aims to maintain discipline while providing clients with excess return per unit of risk.

In addition to their rating on Apollo Global Management, the analyst also raised their price target on Ares Management Corp by 12.5%, from $112 to $126, while maintaining a Hold rating on the stock.

The consensus among analysts is that Apollo Global Management's upcoming year will deliver earnings per share (EPS) of $7.88. If these analysts are correct, it would represent a significant 65.9% increase on a year-over-year basis.

Since the release of Apollo Global Management's latest quarterly report on February 8, 2024, the stock price has increased by 2.3%. On a year-over-year basis, the stock has risen by an impressive 60.7%. During this period, Apollo Global Management has outpaced the S&P 500, which has seen a 23.2% increase.

Wells Fargo analyst Timothy O'Shea, who raised the price target on Apollo Global Management, is ranked by WallStreetZen in the top 14% out of 4,470 Wall Street analysts. O'Shea specializes in the Financial Services and Communication Services sectors, boasting an average return of 11.5% and a 70.8% win rate.

Apollo Global Management, Inc. is a private equity firm headquartered in New York, NY. The firm manages portfolios on behalf of pension funds, financial endowments, sovereign wealth funds, and institutional and individual investors. Their investments span a range of strategies, including traditional buyouts, distressed buyouts, debt investments, corporate restructurings, and industry consolidation transactions. Since its founding in 1990, Apollo has established itself as a prominent player in the private equity space.

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