It’s time to buy the dip in this private equity stock, analysts say
Several Wall Street analysts are sticking with their bullish views on Blackstone despite a disappointing third quarter, telling investors that now is the time to buy the stock. Blackstone shares fell nearly 8% on Thursday after profit and revenue missed estimates, according to FactSet’s StreetAccount. The stock is now down 18% since its recent peak on September 19th. BX 3M Mountain Blackstone stock has fallen sharply over the past month. But Oppenheimer analyst Chris Kotowski said in a note to clients Friday that the move in the alternative asset manager’s shares was an overreaction and that investors should buy on dips. “BX shares are down about 8% on the balance sheet date (compared to the S&P 500 by about 1%), and our message is simple: This is one of those opportunities that the market occasionally gives you when people are worried about nothing freak out,” Kotowski said. who has an outperform rating and a $105 price target on the stock. That’s down from the previous $107, but still nearly 11% above Blackstone shares’ closing price on Thursday. “Investing in private equity (PE)-based ‘alts’ requires a long-term perspective; “Literally, almost nothing can be predicted from a single source about the future World Series from the first inning of the first game,” Kotowski added. Bank of America analyst Craig Siegenthaler also maintained his “buy” rating on the stock and said in a note to clients that Blackstone’s growth should accelerate again in 2024. “Blackstone (BX) has shown relative strength – including with its strong investment performance (particularly in the private sector). credit and infrastructure). The next macro headwind will likely be rising defaults in 2024, but we believe BX is well positioned given its portfolio constructions (almost no CRE office, low loan LTVs) and low baseline (defaults/no provisions). “In challenging times, we expect BX to outperform and gain market share,” said Siegenthaler. The Bank of America analyst has a price target of $115 on the stock, up from $116 previously. Fundraising was a weak point for the company in the third quarter, but Blackstone’s assets under management still grew 6% year over year. Jon Gray, Blackstone’s president and chief operating officer, told “Squawk Box” on Thursday that the investment firm has the capital to complete deals. “With more than $200 billion in dry powder, that gives us a lot of flexibility to operate in what appears to be a choppy market,” Gray said. —CNBC’s Michael Bloom contributed reporting.
