Bubble or no bubble, this is the best stock for AI exposure: analyst
Investing.com - BMO Capital has reiterated its Market Perform rating and $136.00 price target on Apollo Global Management (NYSE:APO), citing strong momentum in the company’s retirement business heading into 2026. Currently trading at $130.1, Apollo appears undervalued according to InvestingPro analysis, with 10 analysts recently revising earnings estimates upward for the upcoming period.
The firm noted that Apollo’s origination strength is evident, with management planning to retain more proprietary flow within Athene, indicating confidence that asset production will serve as a major earnings driver next year.
BMO Capital identified liability dynamics as the primary swing factor for Apollo, stating that while Registered Index-Linked Annuity (RILA) expansion is beneficial, assumptions around surrender normalization appear less certain and remain subject to competition.
The research firm highlighted Athene’s position with over $85 billion in annual inflows, normalized spreads of 120-125 basis points, and $9 billion in deployable capital.
These factors collectively position Athene to compound earnings, according to BMO Capital’s analysis of Apollo Global Management’s retirement business operations.
In other recent news, Apollo Global Management has made significant moves to strengthen its financial position and market outlook. The company has priced a $750 million offering in senior notes, including $400 million in 4.600% Senior Notes due 2031 and $350 million in 5.150% Senior Notes due 2035, which will consolidate with a previous issuance. This financial maneuver is part of Apollo’s broader strategy to raise capital. Additionally, Goldman Sachs reiterated its Buy rating for Apollo, maintaining a price target of $155, citing expectations for 2026 Spread Related Earnings to stabilize in the 120-125 basis points range. Morgan Stanley also upgraded Apollo’s stock to Overweight, raising its price target to $180, based on anticipated growth reacceleration in 2026 and 2027. Furthermore, Apollo will host a Retirement Services Business Update on November 24, 2025, providing insights into its strategic plans. These developments highlight Apollo’s proactive approach to securing its financial future and market position.
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