On Friday, BMO Capital maintained its Market Perform rating on The Blackstone Group (NYSE:BX) stock, with a consistent price target of $110.00. The firm's analysis suggests that Blackstone's operating results for the remainder of 2024 may mirror those seen in the first quarter.
The anticipated performance includes an expected improvement in capital deployment, fundraising efforts likely to be led by Credit & Insurance, and a projected gradual increase in carried interest realizations.
The firm's stance on Blackstone's stock is influenced by its valuation, which is seen as reflecting a balanced risk/reward scenario. BMO Capital's outlook indicates that while there are positive aspects to Blackstone's performance, the stock's current premium valuation adequately captures these elements.
In contrast, BMO Capital sees a more attractive total return potential in other stocks rated Outperform, specifically highlighting APO as a better option in this context. This comparison suggests that while Blackstone is expected to perform steadily, there may be other investment opportunities within the sector that offer higher returns.
Overall, BMO Capital's commentary underscores the view that Blackstone is poised for consistent performance but may not offer the highest returns compared to select peers in the market. The firm's analysis points to a steady outlook for Blackstone, with specific areas of the business expected to drive its performance through the remainder of the year.
InvestingPro Insights
BMO Capital's recent analysis of The Blackstone Group (NYSE:BX) highlights the firm's steady performance and balanced risk/reward valuation. To further enrich this perspective, InvestingPro data and tips provide additional context. With a market capitalization of $141.16 billion and a price-to-earnings (P/E) ratio of 43.83, Blackstone's financial health is robust. The adjusted P/E ratio for the last twelve months as of Q1 2024 stands at 39.27, suggesting a slight improvement in valuation over time. Furthermore, the company's robust revenue growth of 131.1% during the same period underscores its operational success.
InvestingPro Tips indicate potential areas of interest for investors. Blackstone is expected to grow its net income this year, which may be a positive sign for future performance. Additionally, the company has been able to maintain dividend payments for 18 consecutive years, providing a degree of income stability to shareholders. It's noteworthy that analysts predict the company will be profitable this year, and it has indeed been profitable over the last twelve months. However, it's important to note that 10 analysts have revised their earnings estimates downwards for the upcoming period, which could be a point of consideration for investors.
For those interested in a deeper dive into Blackstone's financials and further InvestingPro Tips, a visit to https://www.investing.com/pro/BX could provide valuable insights. There are 10 additional tips available on InvestingPro to help investors make more informed decisions. And remember, using the coupon code PRONEWS24 can get you an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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