Blackstone stock price target raised to $180 from $168 at KBW

Blackstone Group (BX) reported robust Q2 2025 results, with EPS of $1.21 and revenues of $3.71 billion significantly exceeding analyst forecasts by 11.01% and 32.97% respectively. This strong performance, primarily driven by higher fee-related earnings and net realizations, prompted Keefe, Bruyette & Woods (KBW) to raise its price target on BX to $180 from $168, while maintaining a Market Perform rating. KBW also increased its forward estimates for Blackstone's private equity and credit segments, citing stronger-than-anticipated underlying fundamentals and robust fundraising despite market uncertainties.

Analysis

Blackstone Group (BX) delivered a significant Q2 2025 earnings beat, with reported EPS of $1.21 surpassing forecasts by 11.01% and revenue of $3.71 billion exceeding expectations by 32.97%. The outperformance was primarily driven by higher-than-anticipated fee-related earnings, which contributed $0.08 of the $0.10 per share beat, underscoring strength in transaction and performance-based fees rather than just base management fees. This robust operational performance, which includes 37% LTM revenue growth, prompted Keefe, Bruyette & Woods (KBW) to increase its price target to $180 from $168. However, KBW maintained its 'Market Perform' rating, suggesting the positive results may already be priced in. The firm's outlook is bifurcated, with upward revisions for Blackstone's private equity and credit segments, fueled by strong fundraising despite market uncertainty, but a more cautious stance on its real estate business. This positive sentiment is broadly shared, with nine analysts revising earnings estimates upward for the upcoming period, though the article notes that one AI-based valuation tool did not flag BX as a top undervalued opportunity.

Key Decisions for Investors

• Investors should recognize the strong operational momentum, particularly in the private equity and credit segments, which are driving significant fee-related earnings growth and could support the stock's performance in the near term.
• The 'Market Perform' rating from KBW, despite a price target increase, suggests a balanced risk-reward profile, advising against overly aggressive positioning as significant upside may already be priced in.
• Monitor the performance of Blackstone's real estate portfolio closely, as KBW's cautious outlook on this segment represents a key potential headwind that could offset strength in other business lines.