Apollo Global Management (APO) is expected to see strong momentum in 2026, supported by fee-related earnings, spread-related earnings and principal investment income, Morgan Stanley said in a note Tuesday.

The brokerage models 22% growth in fee-related earnings. Spread-related earnings are expected to rise 11% and principal investment income should contribute 9%. Morgan Stanley projects 2026 and 2027 earnings per share of $9.45 and $11.41 respectively.

The investment firm said Apollo's growth is underpinned by durable origination scale. The firm also pointed to a rising base of fee-generating assets under management and strategic portfolio acquisitions further support growth.

Apollo's low exposure to software-related credit risks and disciplined underwriting provide stability to earnings, according to the note.

The investment firm noted that Apollo continues to expand its addressable market beyond traditional institutional investors. Growth is expected across private wealth and insurance channels. The company is also benefiting from favorable regulatory developments, including the potential inclusion of alternatives in 401(k) plans.

Morgan Stanley raised its price target to $181 from $180 while maintaining its overweight rating.

Shares of Apollo Global Management were up 2% in recent Tuesday trading.

Price: 136.63, Change: +2.66, Percent Change: +1.99