Possible Rowan selection for Treasury Secretary would be boost for Apollo stock, private equity industry, says TD Cowen

The potential appointment of Apollo Global Management CEO Marc Rowan would boost the stock and the broader alternative asset management sector, according to TD Cowen. The race for President-elect Donald Trump’s Treasury Secretary pick appears to be between Rowan, former Federal Reserve Governor Kevin Warsh, Key Square Group founder and CEO Scott Bessent and Sen. Bill Hagerty, R-Tenn. Rowan and Warsh were expected to meet with Trump for talks at Mar-a-Lago as part of the selection process. “Broadly, such an outcome would be a positive for the industry, as it likely tempers regulatory risk(s) while possibly accelerating the sector’s entry into the retirement market, even beyond his official purview,” analyst Bill Katz wrote in a note, referring to a possible Rowan appointment. President-elect Donald Trump’s reelection platform included efforts to deregulate industries, which would facilitate large transactions such as the ones seen in the private equity sector. Since the election, the stock has jumped 10% — outperforming the S & P 500’s 2.6% gain in that time. On Thursday, shares were up more than 1%. APO 1D mountain Apollo shares on Thursday Katz also thinks any “key man risk” at Apollo in the event Rowan is appointed to Trump’s cabinet is limited. Fundamental momentum “is likely to remain strong,” the analyst said. Likely CEO successors are co-presidents Jim Zelter and Scott Kleinman, according to Katz. Both are well-known and have “executed strongly,” he said. The analyst reiterated his buy rating on the stock, citing a constructive setup heading into 2025. His price target of $178 implies upside of more than 9% from Wednesday’s close. Shares of Apollo have soared 77% year to date.