UPDATE: Morgan Stanley Initiates Coverage on Apollo Global Management LLC with Overweight Rating, $33 PT on Strong Total Return Expectation

In a report published Wednesday, Morgan Stanley analyst Matthew Kelley initiated coverage on

with an Overweight rating and $33.00 price target. In the report, Morgan Stanley noted, “Initiating on APO at Overweight with a 31% total return expectation based on a $33 price target (20% upside) and an 11% divi yield for 2014. We expect the stock to react favorably to strong distributions through 2014 and to Athene, which drives a 10% AuM CAGR and a more management fee-rich (higher multiple) earnings profile over time.” Apollo Global Management LLC closed on Tuesday at $27.40.