Why Apollo Global Management Shares Are Moving Today?

Apollo Global Management, Inc. APO shares are trading higher after BofA Securities analyst Craig Siegenthaler upgraded the stock from Neutral to Buy. The price target was slightly adjusted from $124 to $123.

BofA Securities highlighted two significant near-term catalysts for Apollo Global Management:

1. S&P 500 Addition: Apollo is anticipated to be added to the S&P 500 index, following in the footsteps of peers like KKR and Blackstone. This inclusion is expected to drive substantial buying interest from passive funds.
2. Investor Day on Oct. 1: Past investor days have positively impacted stock performance, and the upcoming event is expected to address key concerns and showcase Apollo's strategic positioning and growth potential.

The analyst also emphasized Apollo's attractive valuation and potential 25% return with conservative assumptions, despite recent selloffs driven by weak economic data and lower interest rate outlooks.

Earnings Forecast: The earnings estimates for third-quarter 2024, 2025 and 2026 have been slightly lowered due to expected lower transaction fees. However, the long-term outlook remains strong, with Apollo expected to achieve a 15%-20% earnings growth algorithm.

APO Price Action: Apollo Global Management shares rose by 4.34%, trading at $103.46 at the time of writing, according to Benzinga Pro.

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