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Carlyle Group seen as undervalued despite private credit worries, with strong balance sheet and growth targets.

Analyst Insights
30 May 2026
Seeking Alpha
View Source
Bullish
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Carlyle Group's stock has underperformed, down 30% from highs, due to concerns over private credit exposure that are overstated. The company has limited direct lending risk and a strong balance sheet with about $5 billion in net cash and investments. Management aims to raise $200 billion in new assets and achieve earnings above $6 per share, though the guidance is ambitious. The firm maintains a 3.1% dividend yield and ongoing share buybacks, making its current valuation of 11 times earnings attractive with a fair value estimated in the mid-$60s as fundraising grows.

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