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On Thursday, JMP Securities analysts, including Devin Ryan, maintained a Market Outperform rating for Blackstone Group (NYSE:BX) shares, with a steadfast price target of $165.00. The analysts highlighted Blackstone’s robust fundamental performance despite recent operational challenges. With a current market capitalization of $155 billion and a strong financial health score rated as "GOOD" by InvestingPro, Blackstone continues to demonstrate resilience despite its stock declining about 25% year-to-date. They underscored the firm’s strength and resilience, particularly in light of increased market volatility following the end of the first quarter of 2025.
The JMP Securities team expressed confidence in Blackstone’s ability to navigate the current market landscape. They pointed to several key factors supporting this view: Blackstone’s capital-efficient model devoid of on-balance sheet insurance liabilities, its significant $180 billion in unallocated capital, which positions it as a preferred capital provider, and the organic nature of its growth, free from risks associated with recent acquisitions. The firm’s strong position is reflected in its impressive revenue growth of 24.6% over the last twelve months, though InvestingPro analysis suggests the stock is currently trading at a premium to its Fair Value.
Furthermore, the analysts noted that Blackstone’s Fee-Related Earnings (FRE) exhibit less volatility, with approximately 80% of these revenues derived from management fees. This aspect of Blackstone’s revenue stream adds a layer of stability to its financial profile, which is particularly valuable amid unpredictable market conditions. The company has maintained consistent dividend payments for 19 consecutive years, currently offering a dividend yield of 2.9%.
The commentary from JMP Securities comes as Blackstone continues to demonstrate a robust operational framework. The firm’s strategic positioning, with ample dry powder and an organic growth trajectory, provides a solid foundation for its favorable rating. Blackstone’s ability to steer through market turbulence without material changes to its underlying fundamentals has been a key observation by JMP analysts. Detailed analysis available through InvestingPro reveals the company maintains a strong gross profit margin of 100.9% and robust return on equity of 34%.
In conclusion, despite the heightened volatility in the post-first quarter market environment, JMP Securities reaffirms its positive outlook on Blackstone Group shares. The firm’s strong fundamentals and strategic advantages are expected to help it maintain a steady course in the face of ongoing market fluctuations. For deeper insights into Blackstone’s valuation and growth prospects, investors can access comprehensive analysis and 12 additional ProTips through InvestingPro’s detailed research reports.
In other recent news, Blackstone Group reported impressive first-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of $1.09, compared to the anticipated $1.06. The company’s revenue also exceeded projections, reaching $3.29 billion against the forecasted $2.94 billion. Total (EPA:TTEF) assets under management (AUM) increased by 10% year-over-year to nearly $1.2 trillion, demonstrating strong growth in management fees and fee-related earnings. TD Cowen expressed continued confidence in Blackstone by raising its price target to $154 from $147, maintaining a Buy rating. This optimism is based on a higher anticipated long-term net new asset growth rate and Blackstone’s robust wealth management platform, which saw $11 billion in gross inflows during the first quarter. Meanwhile, Keefe, Bruyette & Woods adjusted their price target for Blackstone to $139 from $141, keeping a Market Perform rating. This revision reflects a more conservative outlook for investment realizations amid current economic conditions. Blackstone’s strategic initiatives include launching a multi-asset credit fund aimed at Registered Investment Advisors, expected to expand its distribution platform further.
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