The Blackstone Group (BX) Is Back From the Dead

Posted by Easystockalerts.com Staff on Aug 2, 2010

With an increasing amount of Easystockalerts.com users adding the stock to their follow list, The Blackstone Group (NYSE: BX) may be worth watching.

Blackstone Group is a private-equity company that came public in 2007, marking the top in the private equity bubble. After pricing its highly-anticipated IPO at $31 per share, the bursting of the credit bubble and subsequent financial meltdown sent the stock down to the $3-range in early 2009. The slow economic recovery has since seen the shares steadily move back to the current levels in the mid-$11s.

Not only are Easystockalerts.com members liking the future prospects of Blackstone, Wall Street has a new-found love affair with the once left-for-dead stock.

In July, Goldman Sachs pounded the table on the stock after the company surprised to the upside reporting Q2 economic net income of $0.18/unit, well above the consensus of $0.11. The firm called the stock an “underappreciated story” with an attractive valuation. The firm highlighted four key items that makes the stock among their top Buy ideas in the asset management space: 1. stable and growing fee related earnings, 2. a compelling dividend yield, 3. a solid balance sheet, 4. little to no value is currently being attributed to potential performance fees. The firm sees the stock going to $14.50 per share, or 24 percent upside from current levels.

Goldman Sachs is not the only firm to have a positive feeling about the future prospects of The Blackstone Group. Later in July, Bank of America/Merrill Lynch upgraded the stock from Neutral to Buy. The firm has a $16 price target on the stock. The firm said with $29 billion in “dry powder” it is among the best positioned investors in the world.

Now that smart Easystockalerts.com members and Wall Street analysts are warming up to the Blackstone story, it may be a stock to watch in the future.

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