JMP maintains Apollo stock Market Perform rating

On Wednesday, JMP Securities maintained its Market Perform rating on Apollo Global Management (NYSE:APO) shares without setting a new price target. The firm noted Apollo’s consistent high-level execution and progress toward long-term goals for the $92 billion market cap company. The current market valuation is believed to appropriately reflect the company’s recent performance, though InvestingPro data suggests the stock may be undervalued based on its proprietary Fair Value model.

Apollo Global Management has shown considerable strength in its stock over the past year, delivering a remarkable 60.2% return and maintaining its 15-year streak of consistent dividend payments. Following the release of the fourth-quarter 2024 earnings, JMP Securities stated that their outlook on the business remains generally unchanged. The firm’s analysts highlighted Apollo’s successful strides but suggested that the market has already factored in the company’s accomplishments, with the stock trading at a P/E ratio of 22.8x.

Despite Apollo’s robust execution, JMP Securities expressed caution, indicating that their earnings per share (EPS) estimates for 2025 and 2026 are significantly below the consensus on Wall Street. This aligns with InvestingPro data showing four analysts recently revising their earnings estimates downward. According to JMP, there is a potential downside risk to the broader market’s expectations in the near term, with their projections being 4% and 9% lower for the respective years ahead. For deeper insights into Apollo’s valuation and growth prospects, investors can access comprehensive Pro Research Reports covering 1,400+ top stocks on InvestingPro.

JMP’s stance comes after a period of notable stock performance by Apollo, which might have contributed to heightened investor expectations. The firm’s decision to maintain the Market Perform rating without adjusting the price target suggests a view that Apollo’s stock is fairly valued at its current levels, considering both its recent achievements and the potential challenges ahead.

The analyst from JMP Securities did not provide a specific price target update in their commentary. Instead, they focused on the company’s operational efficiency and the alignment of the current stock valuation with Apollo’s ongoing business trajectory.

In other recent news, Apollo Global Management Inc. has launched a $5 billion multi-strategy credit fund, a move that combines various types of investment-grade credits. The fund offers a 30-year maturity period, providing insurers with a longer investment period. In another development, Apollo Global’s wealth business has seen a record 50% increase in assets, with a significant capital influx of $12 billion raised over the past year.

Apollo Global also maintains a positive stance from TD Cowen, which has reiterated a Buy rating for the company. The endorsement follows the recent signing of a five-year employment agreement with CEO Marc Rowan. On another front, Apollo Global has invested $500 million in Aldar Properties’ Subordinated Notes, marking one of the largest corporate hybrid private placements in Abu Dhabi.

Lastly, Apollo Global, in partnership with Securitize, Inc., has ventured into tokenized investment opportunities. This collaboration, starting with the Apollo Diversified Credit Securitize Fund (ACRED), represents the first instance where investors can access the Apollo Diversified Credit Fund through a blockchain-based product. These are some of the recent developments surrounding Apollo Global Management Inc.

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