The Blackstone Group (BX) PT Trimmed at Piper Jaffray into Q3 Results; Sees Attractive Entry Point

Piper Jaffray analyst Jason Weyeneth reiterated an Overweight rating but trimmed his price target on The Blackstone Group (NYSE: BX) to $48.00 (from $50.00) ahead of Q3 results.

Weyeneth believes the underperformance of the group during 3Q15 created attractive entry points as current valuations suggest little value is being placed on the firms' abilities to generate performance fees to drive shareholder distributions.

On BX, Weyeneth said: "Our 3Q15 ENI estimate of ($0.15) reflects an expectation of material reversal of prior accrued across all investment segments, however we haven't modeled BCP V falling below its hurdle rate (although datapoints required to accurately model aren't available). Our distribution estimate of $0.47 reflects a material decline from recent quarters as multiple strategic sales are poised to close in 4Q15 or early '16 and secondary offerings were limited given market dynamics. While we view BX's valuation as attractive vs. traditional asset managers and the broader equity market given its fundamental backdrop and the quality of the franchise, we note BX trades at a healthy premium vs. its peers."

The firm also maintained Overweight ratings on peers Apollo Global Management (NYSE: APO) ($33 PT) and KKR & Co. (NYSE: KKR) ($30 PT).

For an analyst ratings summary and ratings history on The Blackstone Group click here. For more ratings news on The Blackstone Group click here.

Shares of The Blackstone Group closed at $34.01 yesterday.

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