2024-04-03 05:01:28 ET
Summary
- Blackstone's stock has surged by over 50% year-over-year, prompting discussion on whether it is overbought.
- Our segmental outlook shows that Blackstone is real estate top-heavy, which we consider a risk factor due to softening inflation and uncertain real economic growth.
- BX's private equity division has opportunities to capitalize on distressed deals. However, beware of the underwhelming multiple expansion environment.
- Despite mortgages facing duration risk, the credit markets might resume their growth as lower funding costs and rising credit spreads come into play.
- Key metrics suggest Blackstone's stock is overvalued, while a technical analysis contradicts such an argument. As such, we assign a Hold rating to the firm's stock.
Today, our focus turns to the Stephen Schwarzman-run Blackstone Inc. ( BX ) . Blackstone's stock has surged by more than 50% year over year, giving us the opportunity to discuss whether it is overbought.
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For further details see:
Blackstone: Sword Fights Within