Carlyle Group (CG) shares should re-rate higher as its distributable earnings growth track is gaining momentum, RBC Capital Markets said in a report Monday.

"We rate Carlyle outperform as the company's accelerating DE growth trajectory does not appear to be factored into valuation after the recent sell-off," the report said.

The note said its distributable earnings growth has accelerated

from 7% in 2024, to 11% in 2025, and RBC estimates expect mid-teens growth through 2027 thanks to scaling in its AlpInvest and Credit businesses, and Private Equity.

RBC has a price target of $67 on the stock.

Price: 50.63, Change: +1.11, Percent Change: +2.24