Why This Apollo Global Management Analyst Is Turning Bearish

Shares of Apollo Global Management APO were heading south in early trading on Monday.

Although the Federal Reserve is likely near the end of its tightening cycle, the bond market does not reflect this, according to Oppenheimer.

The Apollo Global Management Analyst: Chris Kotowski downgraded the rating for Apollo Global Management from Outperform to Perform, while removing the price target for the stock.

The Apollo Global Management Thesis: While the Fed’s rate hikes have resulted in a roughly 3%-5% decline in the broader equity market indices, “the primary Alt stocks have done exceptionally well,” rising 8.7% in the third quarter and 32.7% year to date, Kotowski said in the downgrade note.

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As a result of this outperformance, Apollo Global Management’s stock “has now traded through our price target,” the analyst wrote. He added the performance of its real estate business could “trigger an earn-out payment in early 2024.”

“Overall, however, we view our estimate revisions as pretty minor and technical in nature,” Kotowski further stated.

APO Price Action: Shares of Apollo Global Management had declined by 1.44% to $89.27 at the time of publication Monday.

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