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Blackstone’s Profit Surges About 60% in Q4; Target Price $78 in Best Case

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The world’s leading investment firm Blackstone Group reported better-than-expected earnings in the fourth quarter of 2020, largely driven by a surge in sales across most of its asset class.

The New York-based manager of alternative assets reported its distributable earnings of $1.5 billion or $1.13 per share in the quarter, which represents year-over-year growth of about 60% from the same quarter last year when the company reported $0.72 per share. That was also higher than the Wall Street consensus estimate of $0.90 per share.

Blackstone reported GAAP net income attributable of $749 million, up more than 50% from the same period a year earlier, for the quarter and $1.0 billion for the year.

The investment firm has also declared a quarterly dividend of $0.96 per share to record holders of Class A common stock at the close of business on February 8, 2021. This dividend will be paid on February 16, 2021.

Despite this, Blackstone shares traded nearly flat at $64.90 in pre-market trading on Wednesday. However, the stock surged about 15% in 2020.

Blackstone Stock Price Forecast

Twelve analysts who offered stock ratings for Blackstone in the last three months forecast the average price in 12 months at $66.13 with a high forecast of $78.00 and a low forecast of $51.00.

The average price target represents a 1.90% increase from the last price of $64.90. From those 12 analysts, eight rated “Buy”, four rated “Hold”, and none rate “Sell”, according to Tipranks.

Morgan Stanley gave a base target price of $78 with a high of $126 under a bull scenario and $30 under the worst-case scenario. The firm currently has an “Overweight” rating on the investment firm’s stock.

Several other analysts have also recently commented on the stock. Zacks Investment Research raised from a “hold” rating to a “buy” rating and set a $66.00 price target. BMO Capital Markets lifted their price target to $51 from $50 and gave the stock a “market perform” rating.

In addition, Oppenheimer raised shares from a “market perform” rating to an “outperform” rating and set a $58 price target. Piper Sandler issued an “overweight” rating and a $71 price target on the stock.

Analyst Comments

“Best-in-class private markets franchise with significant brand power, $152b of dry powder and strong mgmt company balance sheet uniquely position Blackstone (BX) to capitalize on a challenging recession backdrop and drive above peer growth. Fundraising machine that could raise nearly $230 billion in 2021-22, supported by newer initiatives (i.e., Growth Equity, Life Sciences, Core+ RE, Tac Opps, Secondaries, Asian PE etc.) and existing strategies,” said Michael Cyprys, equity analyst at Morgan Stanley.

“We view BX as best positioned for the secular growth story in alternatives given their leading businesses in every major category that should command a premium multiple.”

Check out FX Empire’s earnings calendar

This article was originally posted on FX Empire