BofA Trims TPG Valuation while Reaffirming Confidence in Growth Strategy

TPG Inc. (NASDAQ:TPG) is included among the

On February 24, BofA lowered its price recommendation on TPG Inc. (NASDAQ:TPG) to $72 from $77. The firm maintained a Buy rating on the shares. BofA said the change reflects updated EPS estimates across several brokers, asset managers, and exchanges that recently reported earnings.

On February 6, Reuters reported that TPG agreed to acquire a majority stake in Sabre Industries from Blackstone. The deal values the power infrastructure company at about $3.5 billion, according to people familiar with the matter. Blackstone will retain a significant minority stake in Sabre, which is based in Texas. The company manufactures components used in electricity and communications infrastructure. Sabre employs about 2,800 people, and its largest business is tied to utility infrastructure. Blackstone originally acquired Sabre in 2021, and TPG’s purchase price represents a fourfold increase in value since that investment.

The report also noted that demand for infrastructure supporting AI and cloud computing continues to grow. The expansion of data centers has attracted significant private investment and is expected to require additional capital in the coming years.

TPG Inc. (NASDAQ:TPG) operates as an alternative asset management firm. The company invests across multiple strategies, including private equity, impact investing, credit, real estate, and market solutions.