UPDATE: Citigroup Upgrades The Carlyle Group on Multiple Positive Factors

In a report published Thursday, Citigroup analyst William R. Katz upgraded the rating on The Carlyle Group (NASDAQ: CG) from Neutral to Buy, and raised the price target from $34.50 to $40.00.

In the report, Citigroup noted, “We upgrade our investment opinion to Buy from Neutral, lift our 12-month SOTP/DEDM price target $5.50 to $40, and trim our 2014-15 ENI estimates (and introduce '16) following the 4Q13 ENI beat and subsequent conference call. The upgrade follows: 1) an improvement in distribution visibility; 2) our deep dive into the favorable fundamentals for Alternatives; and, 3) analysis of relative valuation to both peers and implied multiple versus Traditionals.”

The Carlyle Group LP closed on Wednesday at $35.00.