Key Takeaways
- • A Seeking Alpha contributor rates Blackstone (BX) a Buy with a 12-month price target of $135, implying roughly 15% upside from recent levels.
- • Blackstone reported record third-quarter assets under management of $1.37 trillion and $63.3 billion in inflows, which the author argues show that private credit concerns were overdone.
- • Distributable earnings and dividends declined temporarily on slower realizations, with management anticipating a significant fourth-quarter step-up.
- • Shares trade at about 19.7x last-twelve-months distributable earnings with a yield of roughly 4.3%, and remain about 29% below the 52-week high of $165.14.
- • Key risks cited include persistent outflows from BCRED, higher interest rates, and slower fee growth.
Summary
Blackstone Inc. (BX) rose about 8.4% to $118.75 on October 22 following its third-quarter results and traded at about $117.45 before the close on October 23, according to the article. The contributor, who discloses no position in the stock, maintains a Buy rating with a 12-month price target of $135. In the author's reading, third-quarter results show that fears surrounding private credit were overblown. Blackstone reported record assets under management of $1.37 trillion and $63.3 billion in inflows, with growth in other segments offsetting weakness in real estate.
Distributable earnings and dividends declined over the quarter, which the author attributes to slower realizations rather than a deterioration in the underlying business. Management anticipates a significant step-up in the fourth quarter. At current prices, the shares trade at roughly 19.7x last-twelve-months distributable earnings and offer a yield of about 4.3%.
The author identifies several risks to the thesis, including persistent outflows from BCRED, higher interest rates, and slower fee growth. Despite the recovery from October 22, the stock remains well below its 52-week high of $165.14. The article is an opinion piece, and Seeking Alpha notes that its contributors are third-party authors who are not necessarily licensed or certified, and that no recommendation is made regarding the suitability of any investment for a particular investor.
Distributable earnings and dividends declined over the quarter, which the author attributes to slower realizations rather than a deterioration in the underlying business. Management anticipates a significant step-up in the fourth quarter. At current prices, the shares trade at roughly 19.7x last-twelve-months distributable earnings and offer a yield of about 4.3%.
The author identifies several risks to the thesis, including persistent outflows from BCRED, higher interest rates, and slower fee growth. Despite the recovery from October 22, the stock remains well below its 52-week high of $165.14. The article is an opinion piece, and Seeking Alpha notes that its contributors are third-party authors who are not necessarily licensed or certified, and that no recommendation is made regarding the suitability of any investment for a particular investor.
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