Our BUY rating on Apollo Global Management (APO) reflects the company’s strong position among alternative asset managers and ability to generate cash in a wide variety of market environments, notes Stephen Biggar, analyst at Argus Research.

While the outlook for monetization activity of investments has been challenging, we see strong growth in fee- and spread-related assets as a long-term driver for APO stock, and believe that the outlook for monetizations will improve in 2024 given recently improved market valuations.

The company's early 2022 acquisition of Athene also provides several avenues for growth, particularly as a higher interest rate environment sparks greater activity in fixed-income investments, which are the majority of Apollo’s assets.

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