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Research Alert: CFRA Lowers Shares Of The Carlyle Group Inc. To Sell From Buy

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our target price by $25 to $45, using a forward 2026 P/E of 10.7x vs. the five-year historical average of 11.5x and below peer average. We reduce our 2026 EPS estimate by $0.50 to $4.20 and 2027's by $0.25 to $5.15 on revenue projections of $4.2B and $5.0B, respectively. We believe CG's performance and outlook is not keeping pace with larger peers in the alternative asset management (ALT) industry. We were disappointed by CG's Q1 2026 results on several metrics, including distributable earnings. The quarter saw significant investment losses of $617M, primarily reflecting the reversal of unrealized performance allocations. This was largely attributable to depreciation in the firm's seventh U.S. buyout fund, due to market price decreases of certain public investments, though partially offset by appreciation in international energy funds. Net accrued performance revenues declined to $2.6B from $2.9B in Q4 2025, representing a 9% quarterly decrease due to these carry reversals in the quarter.

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