Apollo Global Management Inc. (APO) shares rose 1.5% in premarket trades on Wednesday after Oppenheimer upgraded the stock to outperform from perform at set a price target of $64 a share for the private equity manager. Oppenheimer analyst Chris Kotowski said Apollo and other private equity firms such as Carlyle Group (CG) and KKR & Co. Inc. (KKR) have seen their shares drop sharply this year, but the underlying businesses of the firms remain solid despite jitters about the impact of higher inflation. "We would lean against these fears as the adverse impacts of market turmoil (likely lower realizations for a few quarters) seem transitory, but the upside from deploying ample available dry powder in a dislocated market can produce benefits in performance and fundraising for years to come," Kotowski said. "These are the kinds of markets that the private equity sponsors have historically excelled in, and now, with $442 billion of 'dry powder,' we are confident they can do so again." Shares of Apollo are down 22.4% this year, while Carlyle Group is down 21% and KKR has lost 24.5%.
(END) Dow Jones Newswires
April 13, 2022 09:35 ET (13:35 GMT)
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