Goldman Sachs is shaking up the 2025 playbook for the capital markets industry. In a note shared Monday, analyst Alexander Blostein, CFA outlined key winners and losers in alternative asset managers, brokers, and traditional managers, with bold rating adjustments.
Among the top picks are KKR & Co. Inc. (NYSE:KKR) and Raymond James Financial, Inc. (NYSE:RJF), while Hamilton Lane Incorporated (NASDAQ:HLNE) and Cboe Global Markets, Inc. (NYSE:CBOE) face downgrades.
Alternative Managers: The 2024 High-Flyers Face Valuation Concerns
Alternative asset managers outperformed the S&P 500 by a robust 28% in 2024, surging 51% on average. Yet, lofty valuations and slowing growth expectations may challenge the sector’s momentum in 2025.
Some stocks nearly doubled: KKR & Co. Inc. climbed +82%, and StepStone Group Inc. (NASDAQ:STEP) was up 79%. At the lower end, Carlyle Group Inc. (NASDAQ:CG) rose 24%, while Hamilton Lane Incorporated posted a 31% gain.
Despite these massive returns, average price-to-earnings (P/E) multiples for the group expanded over 30% last year, with the 2026 expected P/E standing at a steep …
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