Apollo Global: We raise our 3Q ENI and cash earnings estimates by more than 20% for Apollo as we anticipate another exceptional quarter for fund performance and active portfolio harvesting; in addition, we factor in 10-15% accretion relating to the recent closing of the Aviva U.S. transaction (please see our research piece published today, “Getting Wiser on Athene”). With respect to the monetization environment, Apollo completed eight secondary offerings during 3Q including transactions for major investments in Lyondell, Berry and Realogy. We raise our target price to $45 (old: $40).
APO Apollo Global price target raised to $45 from $40 at Credit Suisse
Credit Suisse raised Apollo Global forecasts to incorporate the Aviva transaction. Shares of Apollo are Outperform rated and remain a top pick in the group.