UPDATE: Citigroup Reiterates Buy Rating, Raises PT on Apollo Global Management After 4Q12 Update

In a report published Monday, Citigroup reiterated its Buy rating on Apollo Global Management APO, and slightly raised its price target from $25.00 to $26.00. Citigroup noted, “We affirm our Buy rating and raise our 12-month DEDM/SOTP price target $1 to $26 following better than expected 4Q results and call held on 2/8. The update was constructive across FPAUM growth, capital raising, incremental profitability, and realization/distribution visibility. We see the following takeaways. First, realization visibility continues to rise as the PE portfolio is marked well above cost and further secondaries are likely. Second, 2013 is poised to be another outsized distribution year, in our view, and management added a fourth (but smaller) distribution component from B/S cash flow. Third, FPAUM growth is expected to be strong in 2013 and paced by new business in Credit + leverage to Athene. Fourth, Athene economics are becoming an increasing contributor to the firm, bolstering FRE.” Apollo Global Management closed on Friday at $22.69.