Blackstone Inc., a prominent private-equity firm and alternative-asset manager, experienced a setback as its stock fell 6% on Thursday. The company fell short of analyst estimates and received at least one downgrade as a result.
Earnings and Revenue Miss Expectations
According to FactSet consensus data, Blackstone reported third-quarter distributable earnings of 94 cents per share, which was lower than the Wall Street estimate of $1.01 per share. In addition, the company’s revenue of $2.32 billion fell short of the consensus estimate of $2.6 billion.
Analyst Downgrade and Revised Target Price
CFRA analyst Kenneth Leon downgraded Blackstone from buy to neutral and lowered the target price on the stock from $125 per share to $107. Leon expressed concerns about the company’s outlook, citing the potential impact of higher-for-longer rates on fee earnings, fundraising, and investment realizations.
Blackstone’s Response to Challenging Markets
Blackstone Chief Executive Stephen Schwarzman acknowledged the challenges faced by the company in current markets. However, he highlighted that Blackstone was able to raise $25 billion in fresh capital, reaching a record $200 billion in “dry powder.” This capital is available for deals and can be deployed in a dislocated environment.
Stock Performance Comparison
Despite the recent downturn, Blackstone stock has shown significant growth in 2023. It is currently up by 30.5%, compared to a 12.4% rise in the S&P 500.
Achievements and Milestones
Earlier in the year, Blackstone achieved a major milestone by surpassing $1 trillion in assets under management. In addition, the company was included in the prestigious S&P 500 index.
Overall, Blackstone Inc. faces challenges as it falls short of analyst estimates, resulting in a decline in stock value. However, the company remains resilient and is strategically positioned to navigate the current market conditions with its substantial capital reserves.