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On Monday, analysts at Keefe, Bruyette & Woods increased their price target on The Carlyle Group LP (NASDAQ:CG) shares to $45.00, up from the previous target of $43.00. They have maintained a Market Perform rating on the stock.
The adjustment follows The Carlyle Group’s recent earnings report, which surpassed analyst expectations by $0.18. The earnings beat was attributed to several factors including higher fee-related earnings (FRE) from catch-up fees, net performance fees, and a lower tax rate. These positive results were slightly offset by a reduced share count. The company, with a market capitalization of $15.17 billion, maintains strong profitability metrics with a gross profit margin of 68.13% and trades at a P/E ratio of 14.28.
Kyle Voigt of Keefe, Bruyette & Woods highlighted that The Carlyle Group’s fundraising efforts exceeded projections by $1.7 billion. Additionally, he noted improvements in assets under management (AUM) and fee-paying assets under management (FPAUM), both of which contributed positively to the quarter’s performance.
In response to the strong fee revenues, including fee-related performance revenues (FRPR), and a higher FRE margin, the firm has revised its estimates upward. This reassessment led to the new price target of $45, which reflects a more optimistic valuation of The Carlyle Group’s stock based on the latest financial data.
The Carlyle Group’s financial performance and subsequent price target increase reflect a period of robust growth for the company, as evidenced by its higher-than-expected fee revenues and successful fundraising activities.
In other recent news, Carlyle Group reported record financial results for the first quarter of 2025, highlighting a 17% year-over-year increase in fee-related earnings, which reached $311 million. The firm’s assets under management also hit a new high of $453 billion, marking a 6% growth from the previous year. Carlyle achieved a record $50 billion in inflows over the past year, with $14 billion occurring in the first quarter alone. Strategic initiatives in capital markets contributed $150 million in fees, underscoring the firm’s ongoing growth. Despite these strong financial performances, uncertainties in trade policies have tempered market enthusiasm. Analysts from firms such as Barclays (LON:BARC) and Goldman Sachs discussed the impact of trade policies and tariffs on Carlyle’s investment activities during the earnings call. Carlyle’s CEO, Harvey Schwartz, emphasized the firm’s diversification and long-term investment strategy as key strengths in navigating the current market environment. Additionally, Carlyle is on track to meet its ambitious $40 billion fundraising target for 2025, with expectations of continued growth in fee-related earnings.
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