Oppenheimer Upgrades Blackstone to Outperform Amid Market Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy BX?
Source: seekingalpha
- Rating Upgrade: Oppenheimer upgraded Blackstone (BX) from Perform to Outperform, highlighting the stock's recent struggles despite its outstanding performance, particularly in real estate, indicating a market underestimation of its potential.
- Price Recovery: Blackstone (BX) shares rose 1.5% in early trading on Monday, reflecting investor confidence in its future performance, especially given its strong fundamentals in real estate and private credit, which may attract more capital inflows.
- Unique Business Model: Analysts noted that Blackstone's capital-light business model allows nearly all earnings to be returned to shareholders, with no direct controlling ownership of an insurance affiliate or significant large balance sheet investments, enhancing its appeal to investors seeking stable returns.
- Market Opportunity: Oppenheimer believes the current market dislocation presents investors with a chance to buy the industry's premier franchise at a very attractive valuation, particularly as the strong performance of its real estate business suggests significant upside in the coming years.
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Analyst Views on BX
Wall Street analysts forecast BX stock price to rise
12 Analyst Rating
5 Buy
7 Hold
0 Sell
Moderate Buy
Current: 114.830
Low
166.00
Averages
176.60
High
205.00
Current: 114.830
Low
166.00
Averages
176.60
High
205.00
About BX
Blackstone Inc. is an alternative asset manager. Its asset management includes global investment strategies focused on real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets, secondaries, and hedge funds. Its Real Estate segment comprises its management of opportunistic real estate funds, Core+ real estate funds, and real estate debt strategies. Its Private Equity segment includes its management of flagship Corporate Private Equity funds, sector and geographically focused Corporate Private Equity funds, core private equity funds, an investment platform, and others. Its Credit & Insurance segment consists of Blackstone Credit & Insurance, which is organized into three overarching strategies: private corporate credit, liquid corporate credit and infrastructure and asset-based credit. Its Multi-Asset Investing segment is organized into four investment platforms: Absolute Return, Multi-Strategy, Total Portfolio Management, and Public Real Assets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- IPO Filing: Blackstone Digital Infrastructure Trust Inc. has publicly filed a registration statement on Form S-11 with the SEC for a proposed initial public offering, although the number of shares and price range remain undetermined, with market conditions influencing the timing and completion of the offering.
- Listing Plans: If the offering is successful, the trust intends to list its stock on the New York Stock Exchange under the symbol 'BXDC', which would provide the company with broader access to capital and enhance its market visibility.
- Underwriter Lineup: A consortium of leading investment banks including Goldman Sachs, Citigroup, and Morgan Stanley are acting as joint lead book-running managers for the offering, reflecting strong market confidence in the project and providing robust financial backing for the company.
- Legal Compliance Statement: The registration statement for this offering has not yet become effective, meaning that the securities cannot be sold or offers to buy accepted prior to effectiveness, ensuring investor rights are protected and maintaining market order.
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- Rating Upgrade: Oppenheimer upgraded Blackstone (BX) from Perform to Outperform, highlighting the stock's recent struggles despite its outstanding performance, particularly in real estate, indicating a market underestimation of its potential.
- Price Recovery: Blackstone (BX) shares rose 1.5% in early trading on Monday, reflecting investor confidence in its future performance, especially given its strong fundamentals in real estate and private credit, which may attract more capital inflows.
- Unique Business Model: Analysts noted that Blackstone's capital-light business model allows nearly all earnings to be returned to shareholders, with no direct controlling ownership of an insurance affiliate or significant large balance sheet investments, enhancing its appeal to investors seeking stable returns.
- Market Opportunity: Oppenheimer believes the current market dislocation presents investors with a chance to buy the industry's premier franchise at a very attractive valuation, particularly as the strong performance of its real estate business suggests significant upside in the coming years.
See More
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- Strategic Investment: By acquiring a significant minority stake in Rowan Digital Infrastructure to support hyperscale data center projects, Blackstone not only opens new investment avenues but also strengthens its influence in the data center sector.
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- IPO Filing: The newly formed Blackstone Digital Infrastructure Trust filed for an IPO on Friday, focusing on acquiring and owning mission-critical data center assets that drive the modern digital economy, indicating a strategic move into digital infrastructure.
- Blind Pool Structure: Currently classified as a 'blind pool' since it has not yet acquired any data center assets, the company plans to trade under the BXDC ticker, reflecting uncertainty and potential risks in its market entry.
- Management Background: The trust will be externally managed by BX REIT, an affiliate of Blackstone, which is the world's largest commercial real estate owner managing $1.3 trillion in assets, showcasing its strong management capabilities and market influence.
- Market Opportunity: Blackstone estimates a substantial investment opportunity in the data center market, with a projected $1 trillion total addressable stabilized market over the next five years, particularly in top data center markets with strong supply-demand dynamics.
See More
Blackstone Digital Infrastructure Trust Files for IPO
- IPO Filing: Blackstone Digital Infrastructure Trust Inc. has publicly filed a registration statement on Form S-11 with the SEC for a proposed initial public offering, although the number of shares and price range remain undetermined, with market conditions influencing the timing and completion of the offering.
- Listing Plans: If the offering is successful, the trust intends to list its stock on the New York Stock Exchange under the symbol 'BXDC', which would provide the company with broader access to capital and enhance its market visibility.
- Underwriter Lineup: A consortium of leading investment banks including Goldman Sachs, Citigroup, and Morgan Stanley are acting as joint lead book-running managers for the offering, reflecting strong market confidence in the project and providing robust financial backing for the company.
- Legal Compliance Statement: The registration statement for this offering has not yet become effective, meaning that the securities cannot be sold or offers to buy accepted prior to effectiveness, ensuring investor rights are protected and maintaining market order.
See More
BLACKSTONE PLANS $2 BILLION IPO FOR DATA CENTER ACQUISITION COMPANY - BLOOMBERG NEWS
Acquisition Announcement: Blackstone has announced a $2 billion acquisition of a data center firm, highlighting its investment strategy in technology infrastructure.
Market Impact: The acquisition is expected to strengthen Blackstone's position in the data center market, which is experiencing significant growth due to increasing demand for data storage and processing.
See More
Oppenheimer Upgrades Blackstone to Outperform Amid Market Concerns
- Rating Upgrade: Oppenheimer upgraded Blackstone (BX) from Perform to Outperform, highlighting the stock's recent struggles despite its outstanding performance, particularly in real estate, indicating a market underestimation of its potential.
- Price Recovery: Blackstone (BX) shares rose 1.5% in early trading on Monday, reflecting investor confidence in its future performance, especially given its strong fundamentals in real estate and private credit, which may attract more capital inflows.
- Unique Business Model: Analysts noted that Blackstone's capital-light business model allows nearly all earnings to be returned to shareholders, with no direct controlling ownership of an insurance affiliate or significant large balance sheet investments, enhancing its appeal to investors seeking stable returns.
- Market Opportunity: Oppenheimer believes the current market dislocation presents investors with a chance to buy the industry's premier franchise at a very attractive valuation, particularly as the strong performance of its real estate business suggests significant upside in the coming years.
See More
Latest Wall Street Ratings Overview
- Tesla Rating Maintained: Wells Fargo reiterates its underweight rating on Tesla ahead of earnings, indicating a cautious outlook due to limited progress on Robotaxi and Optimus, suggesting a strategic pivot towards Semi and Roadster could be necessary for future growth.
- Starbucks Rating Upgrade: Jefferies upgrades Starbucks from sell to hold, citing stabilization in the U.S. market, and while the stock trades at a high premium, the expectation of more realistic earnings estimates reflects a more optimistic view on the company's future performance.
- Nokia Transformation: Bank of America upgrades Nokia from neutral to buy, highlighting its transition into an optical powerhouse, which positions the company favorably in the telecom equipment market and suggests significant growth potential ahead.
- Chime Financial Rating Initiated: Wells Fargo initiates coverage on Chime Financial with an overweight rating, recognizing its strong growth and profitability in the digital banking sector, and anticipates a positive impact from the upcoming tax season.
See More
Blackstone Files for $2B IPO of Digital Infrastructure Trust
- IPO Initiative: Blackstone has filed for an IPO of its Digital Infrastructure Trust, aiming to raise $2 billion to invest in mission-critical data center assets linked to cloud computing and digital services, thereby enhancing its market position in digital connectivity.
- Strategic Investment: By acquiring a significant minority stake in Rowan Digital Infrastructure to support hyperscale data center projects, Blackstone not only opens new investment avenues but also strengthens its influence in the data center sector.
- New Aviation Leasing Venture: The launch of Equator, a joint aircraft leasing venture with Dubai Aerospace Enterprise, targets $1.6 billion annually in commercial aircraft investments, providing new revenue streams for its credit and insurance arm and enhancing competitiveness in the aviation market.
- Long-Term Growth Potential: With the Digital Infrastructure Trust and Equator platforms, Blackstone can allocate capital into data centers and aviation assets, expected to drive future earnings growth, although high debt levels and market volatility remain areas of concern.
See More
Blackstone Digital Infrastructure Trust Files for IPO Focused on Data Centers
- IPO Filing: The newly formed Blackstone Digital Infrastructure Trust filed for an IPO on Friday, focusing on acquiring and owning mission-critical data center assets that drive the modern digital economy, indicating a strategic move into digital infrastructure.
- Blind Pool Structure: Currently classified as a 'blind pool' since it has not yet acquired any data center assets, the company plans to trade under the BXDC ticker, reflecting uncertainty and potential risks in its market entry.
- Management Background: The trust will be externally managed by BX REIT, an affiliate of Blackstone, which is the world's largest commercial real estate owner managing $1.3 trillion in assets, showcasing its strong management capabilities and market influence.
- Market Opportunity: Blackstone estimates a substantial investment opportunity in the data center market, with a projected $1 trillion total addressable stabilized market over the next five years, particularly in top data center markets with strong supply-demand dynamics.
See More
