TPG rises after TD Cowen upgrades to 'buy'
TPG•TPG shares rise after upgrade
Alternative asset manager TPG's TPG.O shares rise 2.2% to $48.98 premarket.
TD Cowen upgrades TPG to "buy" from "hold" following Q2 results and raises its price target to $64 from $43, representing 33.6% upside to the last close.
Brokerage sentiment and share performance
Thirteen of 16 brokerages rate the stock "buy" or higher and three rate it "hold"; the median price target is $62, according to data compiled by LSEG.
As of the last close, TPG stock was down 25% year to date.
Brokerage cites stronger outlook for capital raising and monetization
The brokerage cites a stronger outlook for capital raising and potential for outsized monetization of assets.
It adds there is reduced angst around AI disruption fears to software firms, which has weighed on the shares year to date.
Software represented 11% of the firm's total AUM, with the majority in private equity and minimal exposure in credit, TPG said earlier this year.
"One of the sector's broad themes is the building queue for monetizations and while 3Q tends to be typically/seasonally soft, we are encouraged by TPG management commentary around exits" - TD Cowen.
