Goldman Sachs Reiterates Buy Rating on Apollo Global Management (APO)

Goldman Sachs analyst Alexander Bolstein reiterated a Buy rating and $155.00 price target on Apollo Global Management (NYSE: APO).

The analyst comments "APO hosted a 2025 Retirement Services business update, during which management provided more details on the previously announced outlook for 2026 SRE (with areas of potential upside), as well as helped investors re-underwrite the segment's long-term 10% annual growth targets. The business update focused on 1) pace and timing of dissipation of headwinds that weighed on Athene's SRE spread in recent quarters, pointing to SRE spread stabilizing in the 120bps-125bps in 2026; note, the spread assumes normal 11% return of the firm Alts book (5% of the portfolio) which could see upside once PIC acquisition closes, 2) the outlook for liability origination volumes in 2026 ($85bn+ gross, ~$43bn net) with key drivers of growth and potential upside, and 3) Athene's capital position and potential uses of future excess capital generation - ranging from pursuing inorganic opportunities to accelerating origination/additional ADIP purchases or ramping up share repurchases. Putting it all together, management re-affirmed runway for 10% SRE growth to $3.8bn in 2026 with an annual 10% growth thereafter, keeping the firm on track for $5.0bn+ of SRE in 2029 with potential upside from there if newer product initiatives grow faster than expected (which should be coming in at near-term targeted ~125bps spread), the spread backdrop improves from currently low levels, or if there are interesting M&A opportunities (likely outside the US). We walked away encouraged by the additional level of granularity provided during this business update and expect it will help alleviate concerns on SRE growth which has been a large driver of YTD under-performance for the stock. With stock trading at 15X 2026E P/E and 13X 2027E P/E (net of SBC), we think the risk/reward for the stock remains attractive. Our $155 price target implies 19% upside to current levels."

For an analyst ratings summary and ratings history on Apollo Global Management click here. For more ratings news on Apollo Global Management click here.

Shares of Apollo Global Management closed at $130.10 yesterday.

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