BMO Capital Markets analyst Rufus Hone reiterated an Outperform rating on Apollo Global Management, Inc. (NYSE: APO), raising the price target to $103 from $96.
Strategic benefits of the APO-Athene combination are more appreciated, as investors are increasingly comfortable with the financial/strategic benefits of the combination, notes the analyst.
According to Hone, in combination with Apollo, Athene is a structurally less risky and higher-growth business (versus a standalone lifeco).
The complete alignment of interests created by the merger allows Apollo-Athene to double down on asset origination (critical enabler of durable FRE/SRE growth), rapidly scale ACS, and significantly expand its third-party yield business, the analyst ...