Apollo Global: Overdone Credit Fears Create A Buying Opportunity (Upgrade)

Seeking Profits5.28K FollowersFollow5ShareSavePlay(9min)Comments(2)SummaryApollo Global Management is upgraded to "Buy" after a 20% share price decline, despite robust recurring revenue and strong fundraising.APO's Q4 saw record fee-related earnings, 25% AUM growth to $938 billion, and $42 billion in quarterly inflows, supporting double-digit growth visibility.Credit risk concerns, especially in software and private credit, appear overdone given APO's low sector exposure and predominantly investment-grade portfolio.Shares offer 11% upside to a $139 risk-adjusted target; management targets 20% FRE growth by 2026 and plans a 10% dividend hike. William_Potter/iStock via Getty Images Shares of Apollo Global Management, Inc. (APO) have been a poor performer over the past year, losing about 20% of their value. While the company continues to report excellent fundraising results, concerns about private equity and credit, with new concerns about the software sector, haveThis article was written bySeeking Profits5.28K FollowersFollowOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know!Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.