APO - Apollo Global Management: Shares Have Become Fairly Valued
2024-02-10 06:49:06 ET
Summary
- Apollo Global Management had an exceptional year in 2023, with significant growth in fee-related earnings and spread-related earnings.
- The company expects to raise a record $50 billion in the asset management business and $70 billion in Athene in 2024.
- Apollo's strong position in private credit and its complementary segments make it an appealing investment, with a fair value of $105 per share.
Dear readers,
Apollo Global Management ( APO ) is one of my favorite alternative asset managers and one that I have covered extensively. I've had a BUY rating on the stock since $64 per share, because I believed that Apollo's focus on private credit and high exposure to annuities would make it very well positioned for a high interest rate environment. Moreover, at $64 per share, the stock was trading at just 8x earnings (Fee-related + Spread-related, combined) which was substantially below peers. More recently, when I covered the stock in early January at $95 per share, the stock was still trading at an expensive valuation, implying Athene's valuation of only 5x Spread-related earnings, below the price that Apollo paid for the insurance provider....
Apollo Global Management: Shares Have Become Fairly Valued