Blackstone (BX) stock outperformed its alternative asset manager peers by an average of 370 basis points after a Q3 earnings beat, but expectations were low and the valuation was below its historical average, RBC Capital Markets said in a Friday note.
The company reported Q3 distributable earnings Thursday of $1.32 per share, ahead of FactSet estimate of $1.26 and RBC's $1.24 expectation.
Management fees for the quarter were 1% below consensus and in line with RBC analysts' estimates, driven by lower real estate fees, according to the note. The better-than-expected distributable earnings were driven by higher carried interest, the analyst said.
The analysts said they cut their estimates on distributable earnings per share by around 4% for both 2027 and 2028, reflecting lower growth in management fees, particularly in real estate, and reduced carried interest.
RBC maintained the company's stock rating at outperform and price target at $169.
Price: 116.77, Change: -1.99, Percent Change: -1.67
