Apollo stock holds Buy rating, $214 target at TD Cowen

On Thursday, TD Cowen maintained a positive stance on Apollo Global Management (NYSE:APO) shares, reiterating a Buy rating and a $214.00 price target. According to InvestingPro data, Apollo, currently trading at $123.24 with a market capitalization of $70.65 billion, appears undervalued based on its Fair Value analysis. The company has demonstrated its financial stability by maintaining dividend payments for 15 consecutive years. The reaffirmation comes after Apollo reported preliminary net investment income figures that surpassed TD Cowen’s expectations but fell short of the consensus estimate on Wall Street. Apollo Global Management disclosed a preliminary alternative net investment income of approximately $290 million, equating to a roughly 9% return.

The reported income, while ahead of TD Cowen’s projections, did not meet the broader market’s expectations. The firm’s analysts have adjusted their forecast to reflect an approximate $0.02 increase to their $1.93 per share alternative net investment income estimate for the first quarter of 2025. With a P/E ratio of 16.84 and a solid dividend yield of 1.31%, Apollo continues to maintain strong fundamentals despite experiencing a 14.07% decline year-to-date. This adjustment is slightly diluted compared to the Street’s estimate of about $1.94 per share. Despite this, TD Cowen analysts have chosen to maintain their current assumptions for fixed income and alternative blend as well as growth in the balance sheet of Athene Holding (NYSE:ATH) Ltd.

TD Cowen anticipates that Apollo’s stock might exhibit mixed trading patterns in the wake of additional declines in its retirement services portfolio. However, they suggest that investors may focus on the sequential improvements and robust performance within Apollo’s AAA segment. The firm’s analysts also noted that Apollo’s stock could potentially display defensive qualities on Friday, following President Trump’s tariff announcement made after the market closed on Wednesday.

The recommendation to retain a Buy rating indicates that TD Cowen’s analysts expect Apollo Global Management to continue to perform well despite the mixed results and external economic pressures. Apollo Global Management’s ability to navigate the current market conditions will be closely watched by investors in the coming days. For deeper insights into Apollo’s valuation and growth prospects, InvestingPro subscribers can access comprehensive analysis including 10+ additional ProTips and detailed financial metrics in the Pro Research Report, helping investors make more informed decisions about this prominent financial services player.

In other recent news, Apollo Global Management has reported preliminary financial results for the first quarter of 2025, highlighting an anticipated alternative net investment income of approximately $290 million before taxes. These results suggest an estimated annualized return of 9% on alternative net investments, with its subsidiary, Athene Holding Ltd ., expected to deliver a 10% return. Additionally, Apollo is exploring the potential sale of Cox Media Group, which could be valued at around $4 billion. The firm has engaged Moelis (NYSE:MC) & Co. to assist with the sale, although no final decision has been made. In another development, Apollo has agreed to acquire a majority stake in OEG Energy Group, valuing the company at over $1 billion, with the transaction expected to close in the second quarter of 2025. Meanwhile, TD Cowen analysts have maintained a Buy rating on Apollo’s stock, citing strong performance despite market challenges and a $214 price target. This endorsement comes amid expectations of favorable long-term outcomes for investors. Apollo’s involvement with EmployBridge Holding Co. is also noteworthy, as the staffing provider recently experienced a credit rating downgrade to ’SD’ by S&P Global Ratings following a distressed exchange transaction.

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