CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our target $28 to $135 on a forward P/E of 25.7x, above the three-year historic average at 22.0x given the macro outlook positioned for lower rates. With real estate still a drag on the ’24 outlook, we cut our ’24 EPS by $0.45 to $5.25 and set ’25’s at $6.35. BX posted Q4 24 EPS of $1.11, a $0.10 consensus beat. For industry-realized financial metrics, performance revenues were +47% in Q4 (-54% in ’23), net realizations +16% (-58%), and distributable earnings +4% (-24%). Investment performance in ’23 was best in Private Credit (+16.4%), Liquid Credit (+13.0%), Infrastructure (+12.1%), and Corporate Private Equity (+12.1%), while Real Estate areas were -6.3% in Opportunistic and -4.3% in Core+ funds. Fund net inflows were +$23B in Q4 (+$149B in ’23) with the largest contributors in Credit and Insurance +$23B (+$63B) and Real Estate +$20B (+$54B). AUM was $1.04T (+7%), fee earning AUM was $763B (+6%), and perpetual capital was $396B (+7%). Dry powder to invest is $197B, an opportunity for future growth.