Apollo Global Shares Fall as Earnings Disappoints

Apollo Global Management shares fell over 4% on Friday after the investment management firm reported lower than expected earnings in the fourth quarter.

The company’s distributable earnings, which are used to pay dividends to shareholders, climbed to $483 million in the fourth quarter from $317.4 million a year earlier. As a result, distributable earnings per share were $1.05, missing the market expectations of $1.10 per share.

Net Income was $612.5 million for the quarter ended December 31, 2021; Net Income Attributable to Apollo Global Management, Inc. Class A Common Stockholders was $234.4 million for the quarter ended December 31, 2021, down from $425 million seen a year ago.

Total AUM increased to $497.6 billion during the quarter, driven by the growth of retirement services clients and strong third-party fundraising.

Apollo Global stock fell over 4% to $66.07 on Friday. The stock fell more than 7% so far this year after surging about 50% in 2021.

Analyst Comments

“We find compelling value in Apollo Global Management (APO) at current levels given expectations for significant $7 in 2023e PF EPS, supported by secular tailwinds in private markets and see key man risk concerns overdone Permanent capital initiatives across the credit business are gaining significant traction while the ATH merger can enhance APO’s ability to generate third party client capital growth,” noted Michael Cyprys, equity analyst at Morgan Stanley.

“We expect a combined APO/ATH to accelerate vertical integration across private credit direct origination which should create a sustainable competitive advance and enhance the growth profile. APO is entering a portfolio harvesting supercycle that should boost cash performance fees over next several yrs.”

Apollo Global Stock Price Forecast

Seven analysts who offered stock ratings for Apollo Global in the last three months forecast the average price in 12 months of $89.50 with a high forecast of $105.00 and a low forecast of $78.00.

The average price target represents a 29.99% change from the last price of $68.85. Of those seven analysts, five rated “Buy”, one rated “Hold”, while one rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $88 with a high of $130 under a bull scenario and $28 under the worst-case scenario. The investment bank gave an “Overweight” rating on the investment management firm’s stock.

Several analysts have also updated their stock outlook. UBS cut the target price to $68 from $75. Wells Fargo lowered the target price to $87 from $91. Citigroup raised the price target to $105 from $100. Jefferies slashed the target price to $78 from $80.

Technical analysis suggests it is good to buy as 150-day Moving Average and 100-200-day MACD Oscillator showing a buying opportunity.

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