Blackstone Exceeds Expectations After Identifying 'The Macro Bottom': Analysts Applaud 'Best Investment Returns In 3 Years'

Blackstone Inc BX reported upbeat revenues for its third quarter on Thursday.

The company reported its results amid an exciting earnings season. Here are some key analyst takeaways.

BMO Capital Markets On Blackstone

Analyst Étienne Ricard reiterated a Market Perform rating, while raising the price target from $112 to $134.

Blackstone delivered "its best investment returns in three years" in the third quarter, Ricard said in a note. The company deployed $34 billion in capital in the quarter, representing "a meaningful acceleration" from the $18 billion quarterly average in 2023, he added.

"Layering in a rise in capital deployment and asset monetizations, the fundraising and carry realization outlook is becoming increasingly clear," the analyst wrote. The current valuation of the stock already reflects expectations of an "improving backdrop for transaction activity," he further stated.

Check out other analyst stock ratings.

Goldman Sachs On Blackstone

Analyst Alexander Blostein reaffirmed a Neutral rating, while raising the price target from $135 to $150.

Blackstone's earnings re-acceleration seems "underway," Blostein said in a note. The company reported its third-quarter results broadly in-line with expectations and management's forward commentary continued to suggest "accelerating earnings growth amid a more constructive outlook for transactions, easing financial conditions, and a step up in management fees from the previously disclosed funds," he added.

The company recorded 6% year-on-year management fee growth and remains on track to deliver "further acceleration in management fee growth as additional funds activate," the analyst stated. While Blackstone's strategic growth initiatives "continue to deliver," the impact of these are partially offset by slower real estate trends, "which will likely take some more time to recover," he further wrote.

JPMorgan On Blackstone

Analyst Kenneth Worthington maintained a Neutral rating, while lifting the price target from $125 to $146.

Blackstone reported distributed earnings of $1.01 per share, topping consensus estimates of 91 cents per share, with the beat being partially driven by "lower quality" items, Worthington said. Base management fees of $1.704 billion came in below consensus of $1.730 billion, he added.

"Building off the three key alternative asset management KPIs of capital raising, investing, and realizing all looking better this quarter as compared with the prior four quarter averages, Blackstone was able to deliver a strong message to the market on this morning's earnings – namely that Blackstone correctly identified the macro bottom, and took advantage by deploying capital more rapidly than peers, which sets up future realizations and fundraising," the analyst wrote.

BX Price Action: Shares of Blackstone were up 2.36% to $173.65 at the time of publication on Friday.

Read More:

• Blackstone Exceeds Q3 Expectations: $1.108T AUM, Achieves Highest Amount Of Fund Appreciation In 3 Years

Photo: Shutterstock