TD Cowen has upgraded Carlyle Group (NASDAQ: CG) from Hold to Buy, raising its price target from \$37 to \$56. This decision follows a robust first-quarter performance and strategic initiatives under CEO Harvey Schwartz that have revitalized the firm’s growth trajectory.
đź“Ś Carlyle’s first-quarter results exceeded expectations, with distributable earnings rising 5.6% year-over-year to \$455.4 million, or \$1.14 per share, surpassing analysts’ estimates. Fee-related earnings jumped 17% to a record \$310.6 million, driven by growth in fund management and a surge in transaction and portfolio advisory fees.
📌 The firm’s assets under management reached a record \$453 billion, up 6% from the previous year, supported by \$14.2 billion in new inflows. Carlyle deployed \$11.1 billion during the quarter and retains \$84 billion in dry powder—capital available for future investment opportunities.
đź“Ś Under Schwartz’s leadership, the firm has aggressively pushed to grow its fee-based income and improve efficiency. A standout has been the Carlyle AlpInvest division, which nearly doubled its profits and is now the fastest-growing unit within the firm.
đź’µ Dividend Fundamentals
Carlyle offers a forward dividend yield of approximately 3.33%, with an annual payout of \$1.40 per share. The payout ratio stands at a conservative 36.94%, reflecting a sustainable and well-covered dividend. While past dividends have shown variability, the current yield is attractive, particularly in the asset management space.