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Investing.com - Keefe, Bruyette & Woods (KBW) raised its price target on Blackstone Group (NYSE:BX) to $180.00 from $168.00 on Sunday, while maintaining a Market Perform rating on the stock.
The price target increase follows Blackstone’s quarterly earnings beat, which exceeded both KBW’s and consensus estimates by $0.10 per share. The outperformance was primarily driven by higher fee-related earnings, which contributed $0.08 to the beat, while higher net realizations added another $0.02. The company’s robust performance is reflected in its impressive 100% gross profit margin and 37% revenue growth over the last twelve months.
KBW noted that the stronger fee-related earnings resulted mainly from higher transaction revenues and fee-related performance revenues, with base management fees coming in relatively in line with forecasts. The firm has raised its forward estimates for Blackstone, with modest changes to its 2026 and 2027 projections.
Blackstone’s fundraising performance exceeded expectations during the quarter, particularly notable given what KBW described as "tariff-driven uncertainty" at the beginning of the period. The underlying fundamentals were stronger than anticipated across the business.
KBW’s revised estimates primarily reflect higher projections for Blackstone’s private equity and credit segments, while maintaining a more cautious outlook on the firm’s real estate business. Looking ahead, InvestingPro data shows that 9 analysts have revised their earnings upward for the upcoming period, with EPS forecast at $8.32 for FY2025. For deeper insights into Blackstone’s valuation and growth prospects, access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Blackstone Inc. reported its Q2 2025 earnings, surpassing analyst expectations. The company announced an earnings per share (EPS) of $1.21, exceeding the forecasted $1.09, resulting in an 11.01% surprise. Additionally, Blackstone reported revenues of $3.71 billion, significantly beating the forecast of $2.79 billion, which marks a 32.97% revenue surprise. These results highlight a strong performance for the quarter, reflecting positively on the company’s financial health. Analysts and investors have shown interest in these developments, as the earnings and revenue figures exceeded predictions. The earnings announcement has drawn attention to Blackstone’s ability to outperform market expectations. This recent performance could influence future analyst assessments and investor decisions.
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