Bank of America Securities analyst Craig Siegenthaler reiterated a Buy rating on Blackstone Group yesterday and set a price target of $199.00.
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Craig Siegenthaler has given his Buy rating due to a combination of factors that highlight the strength and potential of Blackstone Group. The recent results have dispelled major concerns regarding the private market, as there is a resurgence in private market realizations and increased activity in IPOs, secondary offerings, and M&A, which are expected to provide liquidity to limited partners and facilitate capital recycling. Additionally, fears about credit quality in private credit were exaggerated, as the defaults were isolated incidents and not indicative of a broader issue.
Despite a recent dip in stock price, Blackstone’s earnings exceeded expectations, although driven by lower quality factors. The analyst maintains a positive outlook based on Blackstone’s leading position in retail and insurance platforms, which are poised for growth due to various secular trends. The price objective remains at $199, reflecting a potential return of 32%, supported by multiple revisions and higher transaction fees. While there are risks, such as the large asset base and valuation concerns, the long-term growth prospects in private wealth and insurance channels bolster the Buy recommendation.
In another report released on October 21, Morgan Stanley also maintained a Buy rating on the stock with a $215.00 price target.
Based on the recent corporate insider activity of 33 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BX in relation to earlier this year.