Stablecoins are here to stay says BlackRock
Investing.com - CFRA has raised its price target on The Carlyle Group LP (NASDAQ:CG) to $58.00 from $54.00 while maintaining a Buy rating on the stock. Currently trading at $51.24, InvestingPro analysis suggests the stock is undervalued, with the company showing a strong financial health score of "GOOD."
The research firm cited early signs of recovery in private equity monetization in recent weeks as a key factor supporting its more optimistic outlook. CFRA maintained its earnings per share estimates of $4.25 for 2025 and $4.80 for 2026, which remain above the consensus estimates of $4.00 and $4.65, respectively. The company, with a market capitalization of $18.5 billion, has demonstrated strong performance with a 31% return over the past year.
CFRA noted that Carlyle and its peers need improvement in exiting private equity companies to accelerate fundraising with institutional investors. The firm applied a forward price-to-earnings ratio of 12.1x compared to the 10-year P/E of 12.2x to arrive at the new target price.
The research firm highlighted that exit opportunities through trade sales to corporate buyers have been slower than needed, forcing private equity funds to rely more heavily on the secondary buyout market for exits.
CFRA expects capital markets to become more active for fundraising and monetization of private equity investments in 2025, following a period of reduced activity for alternative asset management firms in 2023-2024, while noting concerns about potential tariffs freezing public equity markets.
In other recent news, Carlyle Group reported record financial results for the first quarter of 2025, with fee-related earnings reaching $311 million, a 17% increase from the previous year. The firm’s assets under management hit a new high of $453 billion, reflecting a 6% growth year-over-year. Carlyle also saw significant inflows of $50 billion over the past year, including $14 billion in the first quarter alone. In a strategic move, Carlyle and Diversified Energy Company announced a partnership to invest up to $2 billion in natural gas and oil assets in the U.S., combining Carlyle’s financial expertise with Diversified’s operational capabilities.
Goldman Sachs maintained a Buy rating on Carlyle Group, setting a price target of $51.75, citing optimism about the company’s growth prospects in various strategic areas. Meanwhile, Keefe, Bruyette & Woods increased their price target for Carlyle Group shares from $43 to $45, following an earnings report that exceeded expectations by $0.18. The report highlighted Carlyle’s higher fee-related earnings and successful fundraising efforts. These developments underscore Carlyle’s robust financial performance and strategic initiatives aimed at driving growth in fee-related revenues and expanding assets under management.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.