Gold prices slide further as easing US-China tensions curb haven demand
Investing.com - Piper Sandler has reduced its price target on Blackstone Group (NYSE:BX) stock to $168.00 from $173.00 while maintaining a Neutral rating, citing concerns about fourth-quarter expectations. The investment management giant, currently valued at $190.5 billion, trades at a relatively high P/E ratio of 46.5x, according to InvestingPro data.
The research firm noted that Blackstone shares fell 4% despite posting solid third-quarter results, attributing the weakness to projected softer fee-related earnings margins and a deceleration in management fees expected in the fourth quarter of 2025. Despite market volatility, Blackstone has demonstrated strong performance with 37% revenue growth over the last twelve months and maintains a GOOD financial health rating on InvestingPro.
Performance revenues drove Blackstone’s quarterly earnings beat, with management indicating that 2026 could be its largest year in issuance if the anticipated IPO pipeline materializes, according to Piper Sandler’s analysis.
The firm highlighted comments from Blackstone CEO Steve Schwarzman addressing industry concerns, who stated that recent defaults at banks have been "erroneously linked" to private credit issues.
Piper Sandler raised its 2025 and 2026 earnings estimates to $5.28 and $6.45 respectively, up from previous projections of $4.99 and $6.42, while introducing a 2027 estimate of $7.72, but lowered its price target multiple to approximately 26x from 27x due to peer multiple contraction.
In other recent news, Blackstone Group reported third-quarter earnings for 2025, with distributable earnings of $1.52 per share, significantly exceeding analysts’ estimates of $1.20 and the consensus forecast of $1.22. Despite this earnings beat, the company reported revenue of $3.09 billion, falling short of the expected $3.2 billion. Blackstone is also reportedly among a group of private equity firms considering offers for Optum’s UK unit, owned by UnitedHealth Group. In response to the earnings report, Citizens maintained its Market Outperform rating for Blackstone, reiterating a price target of $195.00. Meanwhile, Evercore ISI adjusted its price target for Blackstone to $175.00 from $180.00, while still maintaining an Outperform rating. These developments highlight the mixed reactions from analysts following the company’s earnings performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.