Blackstone Inc. (BX) reported strong third-quarter financial results on Thursday, exceeding analyst expectations and sending its stock soaring. The private equity giant reported segment revenues of $2.434 billion for the quarter, slightly surpassing the consensus estimate of $2.408 billion. This robust performance was driven by a combination of factors, including significant investment activity and impressive fund appreciation.
Blackstone’s distributable earnings (DE) also saw a positive uptick, rising 6% year-over-year to $1.279 billion. Fee-related earnings climbed 5% to $1.18 billion. The company’s CEO and Chairman, Stephen A. Schwarzman, expressed his satisfaction with the results, highlighting the company’s strategic position in the alternatives industry. “We invested or committed $54 billion in the quarter — the highest in over two years — and deployed $123 billion in the last twelve months since the cost of capital peaked,” Schwarzman stated. “The third quarter also represented the highest amount of overall fund appreciation in three years, and our limited partners entrusted us with over $40 billion of inflows. Blackstone is exceptionally well positioned as the reference firm in the alternatives industry, with leading platforms in compelling, high-growth areas.”
Following the impressive earnings announcement, Blackstone’s stock surged 2.9% to trade at $74.12 on Thursday. Several analysts responded to the positive results by adjusting their price targets for Blackstone.
Wells Fargo analyst Michael Brown maintained his Overweight rating on Blackstone and increased his price target from $169 to $188. B MO Capital analyst Etienne Ricard also maintained his Market Perform rating but raised his price target from $112 to $134. Barclays analyst Benjamin Budish kept his Equal-Weight rating and lifted his price target from $155 to $174. Goldman Sachs analyst Alexander Blostein maintained a Neutral rating while increasing his price target from $135 to $150. JP Morgan analyst Kenneth Worthington maintained his Neutral rating and raised the price target from $125 to $146. Finally, TD Cowen analyst Bill Katz retained his Hold rating and boosted his price target from $133 to $149.
This strong performance demonstrates Blackstone’s continued dominance in the alternatives industry, solidified by its impressive financial results, strategic investments, and confidence from investors. The company’s commitment to growth and innovation positions it favorably for continued success in the future.