Oppenheimer cuts ratings on Apollo and Blue Owl but says other alternative investment firms remain undervalued

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Steve Gelsi covers banking and cannabis as a Senior Reporter for MarketWatch.

Oppenheimer analysts on Monday downgraded Apollo Global Management Inc. APO, +2.25% and Blue Owl Capital Inc. OWL, +2.63% to perform from outperform after the stocks from the alternative investment managers exceeded their price targets. Oppenheimer reiterated an outperform rating on Blackstone Inc. BX, +0.90% and said KKR & Co. Inc. KKR, +2.66%, Carlyle Group Inc. CG, +0.07%, GCM Grosvenor GCMG, -0.13% and P10 Inc. PX, -0.

66% remain undervalued. While the summer saw the successful initial public offerings of Arm Holdings Plc ARM, +2.99% and Instacart CART, -2.79%, as well as the first megabillion leverage loan transaction with GTCR’s acquisition of Worldpay, analysts said the sharp decline in the bond market “makes us fearful that something, somewhere will sooner or later ‘break’ and cause financial turmoil.” They added that Instacart and Arm did not trade well after their debuts.

 

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