Blackstone's Track Record For Investment Return Under Spotlight: Analyst Raises Forecast
Portfolio Pulse from Nabaparna Bhattacharya
BMO Capital Markets analyst Étienne Ricard has maintained a Market Perform rating on Blackstone Inc. (NYSE:BX) but raised the price target from $95 to $101. Ricard predicts earnings growth resumption in 2024, driven by flagship fundraising and a favorable environment for realizations. The stock is seen to offer mid-teens fee-related earnings (FRE) growth prospects leading to 2025. Despite the positive outlook, the current valuation at 33x implied fee-related earnings is considered to fully reflect this optimism. Blackstone's Q4 distributable earnings rose 4%, beating expectations, and the company declared a $0.94 dividend and repurchased shares. The analyst expects the BREIT fund to return to positive NAV growth in H1 2024. BX shares were trading up by 0.73% to $124.39.
January 26, 2024 | 7:45 pm
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BMO Capital Markets analyst Étienne Ricard has reiterated a Market Perform rating on Blackstone Inc. and increased the price target to $101, citing potential earnings growth and mid-teens fee-related earnings growth prospects leading to 2025. Blackstone's Q4 earnings beat expectations, and the company has shown strong capital allocation through dividends and share repurchases.
The positive adjustment in the price target by BMO Capital Markets reflects confidence in Blackstone's future performance, which is likely to be viewed favorably by investors. The recent earnings beat and effective capital allocation through dividends and share repurchases further support the stock's attractiveness. However, the analyst's note that the valuation fully reflects the optimism tempers the potential upside, suggesting a balanced risk-reward scenario.
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IMPORTANCE 85
RELEVANCE 100