TD Cowen cuts Carlyle Group price target to $50 on weak earnings quality
The move follows a similar pullback by Bank of America earlier in May, highlighting sector-wide concerns over current profitability despite long-term potential.
TD Cowen has reduced its price target for The Carlyle Group Inc. (NASDAQ:CG) to $50 from $53, maintaining a Hold rating on the alternative asset manager. The adjustment, made on May 18, comes in the wake of first-quarter earnings reports across the sector, with analysts noting that while long-term earnings potential is improving, the quality of current earnings remains relatively weak.
In response to the latest results, the firm lowered its earnings per share estimates for 2026, 2027, and 2028. The revision reflects lower expectations for base management fees and realised principal investment income, factors that have weighed on the investment firm’s near-term financial profile.
The downgrade follows a similar action by Bank of America (BofA) earlier in the month. On May 12, BofA lowered its price goal for Carlyle to $43 from $48, maintaining an Underperform rating after the company reported a miss in management fee revenue. BofA analysts stated that Carlyle’s growth rate continues to trail that of its peers.
The Carlyle Group operates through three business segments: Global Private Equity, Global Credit, and Carlyle AlpInvest. Its Global Private Equity segment provides advisory services to the company’s buyout, growth, real estate, infrastructure, and natural resources funds.
The firm is currently included in lists of oversold dividend growth stocks and dividend-paying stocks, though analyst caution persists regarding its immediate earnings trajectory.
