Blackstone Inc.

🇺🇸New York Stock Exchange
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Blackstone Inc. stock analysis BX overview
Slightly Bullish +25

Blackstone (BX) Stock Could Be 23.7% Undervalued After Credit Launch And Real Estate Hire - simplywall.st

🏢 Blackstone expands its private credit platform with SablePointe Credit Strategies and hires Carey S. Roberts as Senior Managing Director for real estate.

💰 The firm manages $177 billion in dry powder available for opportunistic investments in undervalued assets.

📈 Share price has risen 4.4% over the past 30 days and 12.1% over 90 days, though it is down 22.05% year to date.

🤝 Blackstone forms a strategic alliance with Wellington and Vanguard to develop integrated public-private investment solutions.

💵 Revenue across multiple investing segments totals US$14.4 billion, driven largely by private markets.

📉 Simply Wall St's DCF model estimates a fair value of $113.42, implying the current price may be overvalued relative to future cash flows.

🎯 The 'Most Popular Narrative' suggests a fair value of $162.26, indicating a potential 23.7% undervaluation based on growth assumptions.

⚠️ Risks include potential setbacks in private wealth fundraising and prolonged redemption pressure in the BCRED fund.

Bullish Signals
  • Blackstone is strategically expanding into high-growth areas like private credit and real estate, which are already major revenue contributors.
  • The company holds $177 billion in dry powder, positioning it to capitalize on market dislocations and deploy capital for future earnings growth.
  • A strategic alliance with Wellington and Vanguard aims to tap into the private wealth market, potentially expanding revenue channels.
  • Recent stock performance shows resilience with a 4.4% gain over the last month and a 12.1% gain over the last quarter.
  • Long-term investor sentiment remains strong, evidenced by a 54.64% total shareholder return over the past three years.
Risk Factors
  • The stock is down 22.05% year to date, indicating significant short-term pressure despite longer-term gains.
  • A discounted cash flow model estimates a fair value of $113.42, suggesting the current market price may be overvalued relative to intrinsic worth.
  • Potential setbacks in private wealth fundraising could weigh on fee revenue and challenge the undervaluation thesis.
  • Prolonged redemption pressure in the BCRED fund could negatively impact cash flows and overall financial stability.
Full Analysis
Blackstone Group (BX) is receiving attention following strategic expansions in its private credit platform via SablePointe Credit Strategies and the hiring of Carey S. Roberts as Senior Managing Director and General Counsel for its real estate business. These moves underscore a heightened focus on private lending and real estate, sectors that collectively contribute significantly to the firm's revenue streams. The company currently trades at approximately $123.79 per share, reflecting mixed performance metrics with recent gains over 30 and 90 days but a year-to-date decline of roughly 22%. Long-term shareholder returns remain robust, with a three-year total return of 54.64% and a five-year return of 48.98%, suggesting resilience despite short-term volatility. Analyst narratives from Simply Wall St suggest Blackstone could be undervalued by 23.7%, with a calculated fair value of $162.26 based on potential earnings growth from deploying $177 billion in dry powder and strategic alliances with major institutions like Wellington and Vanguard. Conversely, a discounted cash flow model estimates a lower fair value of $113.42, indicating the market may be pricing in higher growth than currently supported by fundamentals.