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On Tuesday, TD Cowen reiterated its Buy rating on Apollo Global Management (NYSE:APO) shares, maintaining a price target of $214.00. Currently trading at $159.29 with a market capitalization of $90.6 billion, InvestingPro analysis indicates the stock is currently undervalued based on its Fair Value model. The firm’s analyst pointed to the company’s strong revenue outlook for 2025, emphasizing management’s confidence in achieving a 15% to 20% year-over-year growth in fee-related earnings (FRE). The positive forecast is attributed to a robust pipeline in capital solutions and planned initiatives for 2026, which suggest high visibility for the $9+ after-tax net income (ANI) guidance.
Apollo Global Management’s management team indicated that the anticipated growth in FRE is largely dependent on discretionary build, with capital solutions expected to be a key contributing factor. The company’s strong pipeline in this area bolsters the outlook for revenue and earnings, despite InvestingPro data showing analysts anticipate a slight sales decline in the current year. The forward-looking approach of the management, already focusing on the 2026 fiscal year, was highlighted as a sign of the company’s strategic planning and potential for sustained earnings growth. The company has demonstrated strong financial health with a current ratio of 7.16, indicating robust liquidity.
The analyst elaborated on the company’s growth prospects, suggesting that the compounding of FRE year-over-year into 2026 and beyond is poised to be robust. This growth is anticipated to be driven by the expansion of Apollo’s assurance (A) and management (M) scaling, an acceleration in wealth management (W/M), and stable prospects in strategic real estate (SRE). The company has maintained dividend payments for 15 consecutive years, with a current dividend yield of 1.14% and recent dividend growth of 7.56%.
TD Cowen’s valuation of Apollo Global Management at approximately 23.5 times the firm’s estimated earnings for 2026 underscores their positive outlook on the company’s financial performance. Currently trading at a P/E ratio of 21.22, with analyst targets ranging from $167 to $214, the stock has shown impressive momentum with a 56% price return over the past six months. The $214 price target reflects this optimism and the expectation of strong earnings compounding over the next years. For deeper insights into Apollo’s valuation and growth prospects, including 12 additional ProTips and comprehensive financial analysis, visit InvestingPro.
The reaffirmation of the Buy rating and price target by TD Cowen suggests a steady confidence in Apollo Global Management’s ability to grow and deliver value to its shareholders. Apollo’s shares continue to be seen as an attractive investment by the firm, backed by a solid strategic vision and favorable market conditions.
In other recent news, Apollo Global Management has been the subject of various analyst assessments and business developments. Keefe, Bruyette & Woods has adjusted Apollo’s price target to $194, citing a lower forecasted growth in fee-related earnings. Despite this, the firm maintains an optimistic outlook, keeping an Outperform rating on Apollo’s stock. In contrast, JMP Securities maintained a Market Perform rating on Apollo’s stock, expressing caution over earnings per share estimates for the coming years, which are below the consensus on Wall Street.
Apollo has also made significant strides in business development. The firm has unveiled a $5 billion multi-strategy credit fund with a 30-year maturity period, aiming to attract insurance-industry funds. The fund includes various types of investment-grade credits, offering a cost-effective solution for insurers. In addition, Apollo’s wealth business has seen a surge in assets by 50%, with a record $12 billion of capital raised in the past year, moving closer to its ambitious $150 billion target.
TD Cowen, another analyst firm, has maintained a Buy rating and a $227 price target on Apollo. This comes after the recent announcement of a new five-year employment agreement with CEO Marc Rowan and significant senior executive promotions. These recent developments underscore Apollo Global Management’s ongoing business trajectory and potential for continued performance in the market.
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