NEW YORK (TheStreet) -- Apollo Global Management (APO) had its price target cut to $34 from $37 at UBS (UBS) on Friday, based on valuation, higher tax rates, higher comp and a 2014 first quarter miss.
The firm said it lowered its numbers for the global alternative asset manager as the company reported a net income of 55 cents per share, below the UBS estimate of 61 cents per share.
Shares of Apollo Global Management are up 0.12% to $26.00.
TheStreet Ratings team rates APOLLO GLOBAL MANAGEMENT LLC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate APOLLO GLOBAL MANAGEMENT LLC (APO) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its notable return on equity, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and feeble growth in the company's earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Capital Markets industry and the overall market, APOLLO GLOBAL MANAGEMENT LLC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- APO, with its decline in revenue, underperformed when compared the industry average of 7.9%. Since the same quarter one year prior, revenues fell by 31.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- APOLLO GLOBAL MANAGEMENT LLC's earnings per share declined by 17.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, APOLLO GLOBAL MANAGEMENT LLC increased its bottom line by earning $3.97 versus $1.95 in the prior year. For the next year, the market is expecting a contraction of 25.9% in earnings ($2.94 versus $3.97).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Capital Markets industry. The net income has decreased by 7.2% when compared to the same quarter one year ago, dropping from $171.51 million to $159.16 million.
- You can view the full analysis from the report here: APO Ratings Report