TD Cowen Sees Carlyle (CG) Entering New Growth Cycle after Strategic Reset

The Carlyle Group Inc. (NASDAQ:CG) is included among the 13 Best Income Stocks with Highest Upside Potential.

On February 27, TD Cowen raised its price recommendation on The Carlyle Group Inc. (NASDAQ:CG) to $67 from $65. It reiterated a Buy rating on the shares. The firm attended the company’s investor day and said the business appears to be moving into a stronger phase after a period of restructuring. The analyst said Carlyle now seems better positioned for improved execution. The firm also said the company’s path to more than $6 in distributable earnings by 2028 appears both achievable and conservative based on current plans.

On February 26, Reuters reported that Carlyle is targeting $200 billion in new capital by the end of 2028. The goal is to increase earnings generated from managing these assets. CEO Harvey Schwartz, who took the role three years ago, said he had “systematically reshaped” the company as part of its turnaround effort. Schwartz, a former Goldman Sachs executive, also noted that Carlyle’s Washington, D.C. location gives it an advantage in areas such as aerospace and defense investing. The firm’s capital raising target would exceed the $158 billion it raised between 2023 and 2025. Carlyle currently manages about $477 billion in total assets.

The company said about $90 billion of the targeted capital would come from credit strategies. Another $60 billion is expected from the AlpInvest secondaries business, and $50 billion from private equity funds. Carlyle also expects fee-related earnings to reach $1.9 billion by 2028, up from $1.2 billion in 2025. These earnings provide stable income for the firm and reflect the growth of its asset management platform.

The Carlyle Group Inc. (NASDAQ:CG) operates as a global investment firm. Its business includes Global Private Equity, Global Credit, and Carlyle AlpInvest. The Global Private Equity segment manages buyout, growth, real estate, infrastructure, and natural resources funds.

While we acknowledge the potential of CG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 13 Best Performing Long Term Stocks to Invest In and 13 Best March Dividend Stocks to Buy

Disclosure: None.  Follow Insider Monkey on Google News.