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Wells Fargo Equity Research started coverage on a plethora of investment managers in a recent note, handing out Overweight ratings to Apollo Global Management (NYSE:APO), TPG (NASDAQ:TPG), Raymond James Financial (NYSE:RJF), Blackstone (NYSE:BX), Bridge Investment Group Holdings (NYSE:BRDG) and BlackRock (NYSE:BLK), and Underweight rating to Brookfield Asset Management (NYSE:BAM) and Invesco (NYSE:IVZ).
Analyst Michael Brown is bullish on:
- Apollo Global (APO), given the firm’s robust growth profile and earnings reliability;
- TPG (TPG), on the view that it’s a beneficiary of lower interest rates and “has the best optionality on growth levers for the next 1-5 yrs;”
- RayJay (RJF), due to “lower share count and better advisory revenue;”
- Blackstone (BX), on the expectation its fee-related earnings growth is poised to accelerate, “and lower rates is an added catalyst;”
- Bridge Investment (BRDG), “based on particularly favorable positioning for this YTD laggard in a decreasing interest rate scenario;” and
- BlackRock (BLK), as “premium results deserve a premium valuation.”
He is bearish on:
- Brookfield Asset Management (BAM), on the premise the stock will continue to lag given its relatively high price-to-earnings ratio; and
- Invesco (IVZ), due to “high leverage, modest buybacks, and ongong fee-rate decline.”
This page features a list of 62 asset managers ranked according to the SA Quant rating system.
