The Blackstone Group (BX) PT Raised to $90 at Morgan Stanley on Thematic Search for Yield

March 16, 2021 3:58 AM EDT
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Price: $79.50 +0.25%

Rating Summary:
    16 Buy, 8 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 8 | Down: 17 | New: 17
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(Updated - March 16, 2021 8:40 AM EDT)

Morgan Stanley analyst Michael Cyprys raised the price target on The Blackstone Group (NYSE: BX) to $90.00 (from $84.00) while maintaining a Overweight rating after interviewing Blackstone President & COO Jon Gray and walking away with two key thoughts: 1) perpetual capital is BX's biggest potential growth driver given growing client interest in longer duration and more yield-oriented strategies and 2) Thematic investing is the key to its alpha generation with investment opportunities in ecommerce, travel, online content, software, green energy, and life sciences.

The analyst stated "Aging populations, thirst for income/yield in a low rate environment, lower public market returns, and demand for higher returns with a smoother ride are powerful secular tailwinds driving investors to allocate more money to alternative investments. Against this backdrop, BX is well positioned to take share in a growing pie, particularly as asset-owner clients and retail platforms are targeting a narrower set of managers with broader product offerings."

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