Goldman Sachs Adds The Blackstone Group (BX) to the Conviction Buy List, Sees 33% Upside

Goldman Sachs added The Blackstone Group (NYSE: BX) to its Conviction Buy List with a price target of $16, suggesting 33% upside.

The firm cited: "(1) BX is poised to generate flows across a wide range of diversified alternative strategies (75% of which are outside of traditional private equity) with sticky assets (avg duration 5.8 years); (2) concerns surrounding near-term realizations in private equity are already priced in, with the market valuing BX’s carry at close to zero (suggesting a free call option on improving performance outlook); and (3) investors underestimate the firm’s strong real estate and alternative credit businesses, with a "war chest" of $19 bn in dry powder and about $14 bn in investments from BREP VI (2007 vintage) moving into cash realization mode over the coming quarters."

Goldman lowered 2012/2013/2014 ENI estimates to $1.27/$1.86/$2.69 from $1.46/$1.94/$2.77

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 $12.04 yesterday.

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