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Based in New York, Blackstone Inc. (BX) is the world’s largest alternative asset manager and also provides capital markets services globally. Valued at $95.08 billion by market cap, the company has more than $1 trillion in assets under management. The company specializes in real estate, private equity, hedge fund solutions, credit, secondary funds of funds, public debt and equity, and multi-asset class strategies.
Shares of this leading asset management firm have outperformed the broader market over the past year. BX has gained 26.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 15.8%. However, in 2024, BX stock is down 1.1%, while the SPX is up 8.7% on a YTD basis.
Zooming in further, BX’s outperformance is also apparent compared to the S&P 500 Financials Sector SPDR (XLF). The exchange-traded fund has gained about 17% over the past year. However, the ETF’s 8.6% returns on a YTD basis compare to the stock’s loss over the same time frame.
On Jul. 18, BX shares closed up more than 1% after the company reported its Q2 results. Its distributable earnings increased 3% year over year to $1.25 billion or $0.96 per share, $0.02 below the consensus estimates of $0.98. Its net income attributable to BX fell 26.1% year over year to $444.41 million.
Fee-related earnings fell 3% year over year to $1.11 billion, and total revenues declined marginally over the prior year quarter to $2.80 billion. BX’s results were affected by the slowdown in its real estate business as high interest rates hit property valuations, and investors invested less money into the business. BX aims to double credit assets to $1 trillion in a decade.
For the current fiscal year, ending in December, analysts expect BX’s EPS to grow 16% to $4.58 on a diluted basis. The company’s earnings surprise history is mixed. It beat or matched the consensus estimate in two of the last four quarters while missing the forecast on two other occasions.
Among the 20 analysts covering BX stock, the consensus rating is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, one “Moderate Buy,” and 12 “Holds.”
This configuration has been consistent over the past three months.
The mean price target of $133.28 represents only a 2.9% premium to BX’s current price levels. The Street-high price target of $164 suggests an upside potential of 26.6%.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
