The Carlyle Group upgraded its rating to Hold and raised its price target to $47

On Wednesday, CFRA raised the The Carlyle Group LP (NASDAQ: ), upgraded the stock to “hold” from “sell” and raised the target price to $47 from $44. The revision comes after the company assessed the stock close to what it believes is fair value based on a forward price-to-earnings (P/E) ratio of 11.2x, which is closely tied to the three-year historical average of 11.0x .

The firm's distribution earnings (DE) forecasts for Carlyle Group have also been raised, with 2024 DE forecasts rising from $3.90 to $4.20 and 2025 DE forecasts from $4.50 to $4.60. Ray Group recently reported distribution earnings (DE) of $1.01 per share, beating the consensus estimate by $0.09. The company expects revenue of $4.32 billion in 2024 and $4.77 billion in 2025, with first-quarter revenue exceeding $35 million for a total of $1 billion.

The Carlyle Group's total assets under management (AUM) have increased to US$425 billion, an increase of 11.5% year-on-year. Among them, fee-based assets under management reached US$304 billion, an increase of 12.2%, while permanent capital fee-based assets under management were mainly related to the Fortitude segment, totaling US$90 billion. The company's AUM is spread across segments, with global private equity assets holding $159 billion (37% of total AUM), global credit assets holding $186 billion (44%), and global investment solutions holdings is US$80 billion (19%).

One issue worthy of attention is that the two private equity funds account for 89% of the total assets under management. The company has $76 billion in “dry power” to invest, which grew 3%. The Carlyle Group has been active, investing $5 billion in the first quarter of 2024 and monetizing $5.9 billion. Funding raised in the first quarter reached $5.3 billion, bringing total funding in the 12 months to $35.6 billion.

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In addition, Carlyle Group has been repurchasing its shares, repurchasing $150 million in the first quarter, and has more than $1.2 billion in repurchase capacity remaining.

Investment Professional Insights

The latest data from InvestingPro shows a mixed picture for The Carlyle Group (NASDAQ: CG ). The company has a market capitalization of $14.84 billion and an adjusted price-to-earnings ratio of -23.9 for the trailing 12 months to the fourth quarter of 2023, reflecting market doubts about future earnings. However, a PEG ratio of 0.18 suggests the company may be growing earnings much faster than its P/E ratio suggests. Additionally, the company's 6-month total price return was 65.66%, which may be of interest to growth investors.

InvestingPro Tips highlights that the company’s quarterly revenue grew by 25.45% in the fourth quarter of 2023, although revenue fell by -41.19% in the past 12 months. Furthermore, The Carlyle Group's dividend yield of 3.12% may appeal to income-focused investors, especially considering the dividend growth rate of 7.69% during the same period.For those looking to delve deeper into The Carlyle Group's financial health and future prospects, InvestingPro offers 19 Bonus Tips Access via annual or bi-annual Pro and Pro+ subscriptions using coupon code PRONEWS24 Extra 10% discount.

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