UPDATE: BMO Capital Markets Upgrades Apollo Global Management to Outperform, Reiterates $31 PT on Recent Buying Opportunity

In a report published Thursday, BMO Capital Markets analyst David J. Chiaverini upgraded the rating on

from Market Perform to Outperform, and reiterated the $31.00 price target. In the report, BMO Capital Markets noted, “We believe APO's price dip following its recent equity offering presents an attractive buying opportunity. The 24.3 million unit offering completed at $25.00 was 100% secondary and helps increase APO's float. We believe Apollo's advisory relationship with Athene holdings should continue to blossom following Athene's acquisition of Aviva USA, which is expected to close in 3Q13. Aviva has $56B of AUA, though $10B was sold post quarter-end through a transaction with Global Atlantic. Apollo estimates $35-$45B of incremental AUM will be garnered through the Aviva acquisition, which we view as significant. We believe Apollo's credit business will continue to be the company's fastest-growing segment given strong investor demand for higher-yield products in the current low rate environment as well as continued growth at Athene. Apollo's next private equity flagship fund (Fund VIII) kicked off fundraising in November 2012 with a target of $12B and is nearing a first close (dry powder in Fund VII is $3.6B as of 1Q13). We believe areas of focus for Apollo's capital deployment include Europe, natural resources, and distressed opportunities.” Apollo Global Management closed on Wednesday at $24.17.