On Monday, Oppenheimer maintained an Outperform rating on shares of The Carlyle Group LP (NASDAQ:CG) and slightly increased the price target to $69.00 from the previous $68.00. The adjustment reflects a valuation based on detailed earnings estimates and a calculated multiple.
The firm's analysis suggests that The Carlyle Group's shares are valued at $69 each, based on projected 2025 fund management distributable earnings, including Expected Bonus Compensation (EBC) of $4.15 per share.
These earnings were taxed at 21%, with a subsequent 10% discount applied to a 21.4x next twelve months (NTM) price-to-earnings (PE) ratio. This method resulted in a 19.2x multiple and an after-tax multiple value of $63.09 per share.
To reach the fair value estimate, Oppenheimer added the after-tax multiple value to The Carlyle Group's net cash and investments per share, which amounted to $5.86. This comprehensive approach led to the new price target of $69.00.
The Carlyle Group LP, a global investment firm, has been under Oppenheimer's analysis, with the firm continuing to show confidence in the company's performance and value. The recent price target increase is a reflection of this ongoing positive outlook.
Investors and market watchers alike will note the new price target as a metric of Oppenheimer's expectations for The Carlyle Group's stock performance in the near future. The Outperform rating suggests that the firm believes the company's shares will perform better than the overall market in the coming months.
In other recent news, The Carlyle Group has been the focus of several analyst adjustments following its first-quarter financial results. TD (TSX:TD) Cowen lowered Carlyle's price target from $49 to $45, maintaining a Hold rating. The investment firm's better-than-expected financial results for the first quarter of 2024 were not enough to prevent a significant share price drop.
Similarly, Keefe, Bruyette & Woods (KBW) revised its stock price target on Carlyle to $48 from $50, while maintaining a Market Perform rating. The adjustment comes after the company reported its first-quarter earnings, which showed a beat on Distributable Earnings (DE) and Fee-Related Earnings (FRE) but raised some concerns over the components contributing to these results.
Oppenheimer also adjusted its price target for Carlyle shares, reducing it to $68.00 from the previous $74.00, despite maintaining an Outperform rating. This decision was influenced by the firm's mixed first-quarter results.
On the other hand, BofA Securities reduced Carlyle's price target from $39.00 to $37.00, and Deutsche Bank (ETR:DBKGn) cut its price target from $63.00 to $55.00, while still supporting the stock with a Buy rating. These revisions reflect the complex nature of financial performance in the private equity sector, which can fluctuate significantly from quarter to quarter.
InvestingPro Insights
With The Carlyle Group LP (NASDAQ:CG) under the investor's microscope following Oppenheimer's recent price target update, key metrics from InvestingPro paint a detailed financial picture. The firm's market capitalization stands at a robust $14.53 billion, indicating a significant presence in the market.
Still, the P/E ratio is currently negative at -22.71, reflecting investor concerns over profitability in the last twelve months as of Q1 2024. Despite this, the PEG ratio of 0.12 suggests potential for growth relative to earnings, which may interest those looking for longer-term value.
The revenue figures show a contraction, with a -33.6% change year-over-year, underscoring challenges the company has faced. Yet, the dividend yield of 3.47% as of May 2024, coupled with a dividend growth of 7.69%, could be a silver lining for income-focused investors.
Moreover, the company's stock has seen a 31.92% total return over the past year, and the InvestingPro Fair Value estimate stands at $38.49, providing a grounded perspective compared to analyst targets.
For those considering an investment in The Carlyle Group, additional insights are available. In fact, there are PRONEWS24 more InvestingPro Tips that can help refine investment strategies. Utilize the promo code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, and gain access to these valuable tips to make informed decisions.
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