Top Wall Street Forecasters Revamp Blackstone Expectations Ahead Of Q2 Earnings

Blackstone Inc. (BX) is scheduled to report its second-quarter earnings on July 24, with analysts forecasting EPS of $1.10 and revenue of $2.81 billion, both representing year-over-year growth. The firm recently acquired a majority stake in NetBrain, and its shares saw a 1.5% gain on Wednesday. Ahead of the earnings call, several prominent analysts have raised their price targets for Blackstone, indicating a generally positive, though varied, sentiment across the analyst community regarding the company's outlook.

Analysis

Blackstone Inc. is approaching its second-quarter earnings release with heightened investor expectations, underscored by a consensus forecast for significant year-over-year growth. Analysts project quarterly earnings to rise to $1.10 per share from $0.96, with revenue anticipated to increase to $2.81 billion from $2.52 billion. This optimistic outlook is further supported by recent corporate activity, including the acquisition of a majority stake in NetBrain, and a 1.5% share price gain to $171.96. Analyst sentiment is directionally positive but reveals a nuanced view; while five high-accuracy analysts from firms including JMP Securities and Evercore ISI have recently raised their price targets, their ratings are mixed. Two maintain 'Outperform' ratings, while three hold 'Equal-Weight' or 'Neutral' stances. Notably, the current stock price has already surpassed the newly raised price targets from four of the five analysts, with only the JMP Securities target of $180 suggesting further upside, indicating that the market may have already priced in much of the anticipated positive news.

Key Decisions for Investors

• Investors should closely monitor the upcoming Q2 earnings report, as a failure to meet or beat the elevated consensus estimates of $1.10 EPS and $2.81 billion in revenue could trigger a significant correction given the stock's recent run-up.
• Consider the mixed analyst ratings despite universal price target increases; the stock's current price of $171.96 has already surpassed most new targets, suggesting that upside may be limited unless the company provides a substantial positive surprise.
• Pay close attention to management's commentary on the earnings call regarding the M&A pipeline and capital deployment, using the recent NetBrain acquisition as a benchmark for the firm's ongoing growth strategy.