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


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

rss feed

Latest Stories

article imageWatch This Alternative Investment for a Buy Signal

All major U.S. indices closed essentially unchanged last week except for the small-cap Russell 2000. While read on...

article imageUS REITs Edged Higher Last Week As Emerging Markets Slumped

Real estate investment trusts (REITs) in the US took the lead in last week’s shortened holiday trading week read on...

article imageA Contrarian Perspective On The Short EuroTtrade

As the euro continues to drift lower, it has become the accepted wisdom that we are headed for parity with read on...

article imageEmerging-Markets Stocks Took The Lead Last Week

Emerging-markets equities enjoyed a solid rise last week among the major asset classes, based on a set of read on...

Popular Articles

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.