Market Overview

Credit Suisse Downgrades Apollo Global Management Due To 'Challenging' Investment Environment


Craig Siegenthaler of Credit Suisse downgraded shares of Apollo Global Management LLC (NYSE: APO) on Tuesday to Neutral from Outperform with a $25 price target.

According to Siegenthaler, it will be difficult for the company's private equity business to deploy its $33 billion of “dry-powder” and also rebuild and deploy its $1.5 billion of carry interest receivables, which is 40 percent lower from its first quarter 2013 peak of $2.5 billion. Accordingly, the analyst estimates that the company's distributable earnings per share and economic net income may be down by 50 percent in 2015.

According to Siegenthaler, investors may be tempted to assume shares appear to be cheap at 11x five-year normalized cash earnings per share, however the stock's performance may not outperform other firms such as Blackstone that are "better positioned fundamentally" for the next 18 months.

Latest Ratings for APO

Aug 2019Initiates Coverage OnOverweight
Jul 2019MaintainsOutperform
Jul 2019MaintainsEqual-Weight

View More Analyst Ratings for APO
View the Latest Analyst Ratings

Posted-In: Asset Managers Craig Siegenthaler Credit Suisse private equityAnalyst Color Downgrades Analyst Ratings


Related Articles (APO)

View Comments and Join the Discussion!

Latest Ratings

View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Jefferies Downgrades Domino's Pizza To Hold

Barclays Initiates Biogen Idec At Overweight