logo
  Join        Login             Stock Quote

Blackstone Group (BX) PT Cut To $17 By Deutsche Bank, 'Buy' Maintained

 April 20, 2012 08:09 PM
 


(By Balasheshan) Deutsche Bank (DB) lowered its price target on shares of Blackstone Group L.P. (NYSE:BX) to $17 from $19, while maintaining its "Buy" rating.

The brokerage said lighter performance fees lead to the company's first quarter miss, but assets under management/fee paying assets under management rising. BX reported economic net income per unit of $0.39, a bit below DB's/Street estimates of $0.46/$0.40.

Top line results were driven by rising management fees (up 17% sequential), mostly offset by lower advisory and transaction fees (down 32% sequential), while performance fees ($386 million versus $358 million in last quarter) and investment income ($83 million versus $56 million in last quarter) increased sequentially, but were lower than expected.

[Related -The Blackstone Group L.P. (BX): Is A Smart Housing And Private Equity Play]

Core expenses were well controlled (up 1% sequential), but the flattish core fee revenues drove some fee related earnings margin pressure.

Despite the miss, it was a decent quarter that included healthy fee paying assets under management growth (up 14% sequential with strong inflows) and solid portfolio appreciation.

Given BX's diversified model, healthy fundraising/returns, and attractive growth opportunities, the brokerage likes the long-term risk/reward and maintained its rating.

BX closed Friday's regular trading down 1.34% at $13.95.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageDeath Cross More Of A Buy Signal?

With the recent weakness in the equity markets, many stocks' and stock indices' chart patterns have traced read on...

article imageKey Price Planning Levels Updated for Chipotle

After a huge price surge from $600 to $760, Chipotle (CMG) shares retraced to a critical “Make or Break” read on...

article imageChina Growth and Market Structural Integrity Top List of Fear Poll Concerns

After a hiatus of almost a year (the October 2014 pullback, to be exact), I have reprised the VIX and More read on...

article imageIs The Treasury Market Still Expecting Moderate US Growth?

The roller-coaster ride in global markets in recent weeks has raised new doubts about economic growth in read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.