Deutsche Bank analysts have a Buy rating on Blackstone but lowered their $153 price target to $134. Feeelated earnings are expected to grow to a P/E multiple of 26 over the next three years. Among risks to the downside are sharply falling real estate values and adverse regulatory developments, perhaps especially related to carried interest.
Blackstone reports quarterly results next week, and consensus estimates call for revenue of $2.49 billion, down 40% sequentially, and EPS of $0.99, or 33.5% lower sequentially. The consensus price target is $116, and the stock’s 52-week range is $79.56 to $149.78. Blackstone pays a dividend yield of 6.15%, and the payout ratio for the past 12 months is 33.7%.
Brookfield Asset Management
Brookfield Asset Management Inc. (NYSE: BAM) focuses on real estate and REITs, renewable power, infrastructure, venture capital and private equity assets. The firm’s market cap is about $58.6 billion. Analysts at Deutsche Bank rate the stock at Hold and have cut the price target from $52 to $44. Faster-than-expected growth in the global economy, stronger-than-expected capital inflows and rising stock prices offer potential upside. Downside risks include a sharp drop in real estate values and slower growth in feeelated earnings due to reduced capital inflows.
Brookfield reports quarterly results on November 10, and consensus estimates call for revenue of $20.98 billion, down 13.6% sequentially, and EPS of $0.79, up 131.1% sequentially. The consensus price target on the stock is $54.88, and the 52-week trading range is $36.93 to $62.47. Brookfield pays a dividend yield of 1.44%, and the payout ratio for the past 12 months is 11.8%.
Carlyle
Carlyle Group Inc. (NASDAQ: CG) has a market cap of around $9.2 billion. The firm specializes in direct and fund of fund investments in a variety of areas, including buyouts, privatizations, structured credit, and private placements.
Deutsche Bank analysts rate the firm at Buy, with a current price target of $36, down from a prior target of $43. Feeelated earnings are targeted at about eight times P/E. Downside risks include a “major” slowdown in acquiring new capital, an “inability to deploy capital effectively in its [private equity] funds,” adverse regulatory developments, higher corporate taxes and a lengthy search for a new CEO.
Carlyle reports quarterly results on November 8. Consensus estimates call for revenue of $1.13 billion, down 3.1% sequentially, and EPS of $1.07 down 8.2% sequentially. The consensus price target is $45.50, and the 52-week trading range is $24.59 to $60.62. Carlyle pays a dividend yield of 5.02%, and the payout ratio for the past 12 months is 19.3%.
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