How are energy investors positioned?
Investing.com - Raymond (NSE:RYMD) James has reaffirmed its Strong Buy rating on Apollo Global Management (NYSE:APO) with a price target of $173.00. Currently trading at $135.88, Apollo boasts a market capitalization of $77.9 billion and maintains a solid financial health score of "GOOD" according to InvestingPro analysis.
The investment firm cited Apollo’s robust growth profile, which is enhanced by strong flows in wealth and retirement services, as a key factor in maintaining the positive outlook.
Raymond James also highlighted Apollo’s operational advantages supported by scale and excellent risk management as additional reasons for the Strong Buy rating.
The $173 price target is based on a sum-of-the-parts valuation analysis, with a fee-related earnings (FRE) multiple of 27x based on comparable businesses.
Raymond James expects FRE to comprise approximately 40% of Apollo’s 2026 operating EPS and applies a 12x multiple on the spread-related earnings (SRE) business, citing its higher earnings CAGR of approximately 10% and scale advantages.
In other recent news, Apollo Global Management has announced several significant developments. The company has priced an offering of $500 million in senior notes due in 2035, with an interest rate of 5.150% per annum, payable semi-annually beginning February 2026. Additionally, Apollo is in discussions to revive a $2 billion debt sale related to a buyout involving Canadian auto parts manufacturer ABC Technologies Holdings Inc. This debt package was previously stalled during a market selloff but is now being reconsidered with private credit firms like HPS Investment Partners.
Furthermore, Apollo has agreed to acquire a majority stake in Kelvion, a German provider of heat exchange and cooling solutions, from Triton, which will retain a minority interest. This transaction is expected to close between the fourth quarter of 2025 and the first quarter of 2026, pending regulatory approval. In another development, Apollo’s co-head of European Credit, Tristram Leach, emphasized the need for private capital in the defense and artificial intelligence sectors due to their substantial funding requirements. These recent activities highlight Apollo’s strategic movements in various sectors and financial markets.
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