Apollo Global Management stock rating reiterated at Overweight by Piper Sandler

Published 03/07/2025, 14:20
Apollo Global Management stock rating reiterated at Overweight by Piper Sandler

Investing.com - Piper Sandler has reiterated an Overweight rating on Apollo Global Management (NYSE:APO) with a price target of $174.00. According to InvestingPro data, Apollo, currently trading at $142.78 with a market cap of $81.6B, appears undervalued based on its Fair Value analysis.

The firm reduced its earnings per share estimates for Apollo, citing continued fee and spread headwinds affecting the company’s performance.

Piper Sandler noted that a challenging pre-announcement of variable investment income from MET in late June suggested worsening conditions for the life insurance sector, potentially pushing normalization factors toward 2026.

Despite these headwinds, the research firm highlighted Apollo as one of its preferred coverage picks heading into quarterly earnings, noting that the company had already pre-announced its variable investment income figures.

The firm expressed confidence in Apollo’s position, citing three key factors: the company’s strength as a "relatively better investment manager than others given full-stack nature," its proactive guidance adjustment that left room for improvement, and Piper Sandler’s belief that "the deployment environment is improving."

In other recent news, Apollo Global Management has announced the appointment of Kristiane Kinahan as its chief accounting officer, effective immediately. In another development, Apollo is set to provide £4.5 billion in financing to Électricité de France for UK energy projects, including the Hinkley Point C nuclear power station. This financing will be issued under EDF (EPA:EDF)’s Euro Medium Term Note program and is one of the largest sterling-denominated note issuances on record. Additionally, Apollo is nearing a deal with Wolfspeed Inc. (NYSE:WOLF) that could lead to the chipmaker’s temporary bankruptcy to alleviate its debt burden. This prepackaged bankruptcy plan would transfer control to Apollo and other lenders, with Wolfspeed shareholders potentially recovering up to 5% of their investment.

Moreover, Brightstar Lottery, formerly International Game Technology (NYSE:IGT), has completed the sale of its Gaming & Digital business to a holding company owned by funds managed by Apollo affiliates for approximately $4 billion. Brightstar plans to use the proceeds for debt reduction, shareholder dividends, and other corporate purposes. The company has also announced a new $500 million share repurchase program. These recent developments highlight significant financial maneuvers and strategic shifts involving Apollo Global Management and its affiliates.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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