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On Monday, TD Cowen showed continued confidence in The Blackstone Group (NYSE: NYSE:BX), with analyst Bill Katz increasing the firm’s price target on the company’s shares to $154.00, up from the previous $147.00. The analyst reaffirmed a Buy rating on the stock. Katz’s assessment follows Blackstone’s first-quarter results, which were disclosed on April 17. According to InvestingPro data, Blackstone, currently valued at $146.84 billion by market cap, appears undervalued based on its Fair Value analysis.
The revised price target represents a valuation of approximately 29 times TD Cowen’s adjusted earnings estimate for 2026. This adjustment is based on a proprietary regression analysis that anticipates a higher long-term net new asset (NNA) organic growth rate for 2026, now expected to exceed 14.5%, up from an earlier estimate of around 14%. The stock currently trades at a P/E ratio of 36.65x, with impressive revenue growth of 22.89% over the last twelve months.
Katz noted that despite a slight downward revision in after-tax distributable earnings estimates for 2025-2026, the firm’s outlook for Blackstone remains positive. The upgraded price target reflects the anticipated strength of Blackstone’s long-term earnings power, balanced against current headwinds including slower realization activity driven by macroeconomic and corporate uncertainty, particularly concerning tariff dynamics. InvestingPro analysis reveals that while 10 analysts have revised their earnings downward for the upcoming period, net income is still expected to grow this year. Get access to 12 more exclusive InvestingPro Tips for Blackstone and a comprehensive Pro Research Report covering what really matters about this stock.
Blackstone’s robust wealth management platform, which garnered $11 billion in gross inflows during the first quarter, was highlighted as a key factor underpinning the positive outlook. Additionally, the firm’s credit and insurance offerings, balance sheet-light approach, and potential leverage in the retirement market sector were cited as drivers for the stock’s favorable evaluation.
Looking ahead, several potential catalysts for Blackstone were identified. These include the May launch of a multi-asset credit fund (BMACX) aimed at Registered Investment Advisors (RIAs), which is expected to further expand the company’s distribution platform. Other anticipated developments include ongoing flagship capital raises and the likely launch of a timely secondaries drawdown vehicle. Any forthcoming clarity on tariff issues is also expected to impact the company’s performance. Notable strengths include the company’s 19-year track record of maintaining dividend payments, with a current dividend yield of 2.85%.
In other recent news, Blackstone Inc. has reported its first-quarter 2025 earnings, which exceeded analyst expectations. The company posted an earnings per share (EPS) of $1.09, surpassing the forecast of $1.06. Blackstone also outperformed revenue projections, generating $3.29 billion compared to the anticipated $2.94 billion. These results highlight Blackstone’s strong operational performance and growth in key financial metrics. The firm declared a dividend of $0.93 per share and saw its total assets under management (AUM) increase by 10% year-over-year, reaching nearly $1.2 trillion. Notably, Blackstone’s management fees rose by 11% to a record $1.9 billion. Looking forward, Blackstone remains cautiously optimistic about growth opportunities, particularly in private credit and sectors such as digital infrastructure and life sciences. Additionally, Blackstone announced a strategic alliance with Wellington and Vanguard, aiming to develop integrated public-private investment solutions.
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