Blackstone stock rating raised to Market Outperform by JMP

On Tuesday, The Blackstone Group (NYSE: NYSE:BX) shares received an upgraded rating from Citizens JMP. Analyst Devin Ryan raised the rating from Market Perform to Market Outperform, setting a new price target at $165.00. According to InvestingPro data, the stock is currently trading at $124.65, with an RSI suggesting oversold territory after a 12.7% decline in the past week. The upgrade is grounded on several key factors, including Blackstone's substantial dry powder, which is reported to be around $170 billion. This sum is spread across various sectors, with private equity holding $69 billion, real estate at $55 billion, and credit and insurance at $40 billion. With a "GOOD" overall Financial Health Score from InvestingPro, the company appears well-positioned to deploy this capital effectively.

The firm's investment activity has seen a notable increase over the past several quarters. Despite the current market downturn, Ryan anticipates that Blackstone will aggressively continue its investment strategy. The analyst believes that this will significantly accelerate deployment, leading to robust returns and outperformance for the company's current strategies.

The $165.00 price target is based on an approximately 26.5 times multiple on the projected 2026 earnings per share (EPS). The analyst's outlook aligns with InvestingPro's Fair Value analysis, which suggests the stock is currently undervalued. With projected EPS of $9.41 for FY2025 and strong revenue growth of 64.8% over the last twelve months, the firm's future performance outlook appears promising.

Blackstone's investment strategy, characterized by a diverse portfolio and active management, has positioned the firm to take advantage of market conditions post-downturn. Ryan's analysis indicates that the company is well-prepared to deploy its resources effectively, which could translate into strong future earnings and shareholder value.

The upgraded rating and new price target reflect an optimistic view of Blackstone's potential to outperform in the coming years. With a significant amount of capital ready to be invested, Blackstone is poised to capitalize on opportunities that may arise as the market stabilizes. The company has maintained dividend payments for 19 consecutive years, currently offering a 4.62% yield. For deeper insights into Blackstone's valuation and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US equities.

In other recent news, Blackstone, a leading U.S. investment firm, is reportedly considering a minority stake in TikTok's U.S. operations. This move is part of a broader effort by non-Chinese investors, including General Atlantic and Susquehanna International Group, to acquire TikTok's U.S. business. The proposed deal aims to reduce Chinese ownership in the U.S. entity to below 20%, in compliance with U.S. law. Additionally, Blackstone's interest in the Asia-Pacific data center market is highlighted by the firm's global head of infrastructure, Sean Klimczak, who expressed optimism about the sector's growth potential.

Meanwhile, ByteDance, TikTok's parent company, is nearing a deadline to sell its U.S. assets to avoid a potential ban. President Trump has indicated that a deal involving several investors is close to finalization, although specific buyers have not been disclosed. Andreessen Horowitz is also reportedly in talks to join a consortium of American investors in a bid to acquire TikTok.

In a separate development, Blackstone's offer to purchase the "Can of Ham" building in London for approximately $427 million was declined by the property's owner, Nuveen. This decision reflects the ongoing complexities in the European real estate market, influenced by changing work patterns and borrowing costs.

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