Blackstone shares lag market despite beating earnings estimates
Wall Street sees potential upside for the New York-based firm even as its stock underperforms the S&P 500
Blackstone Inc. shares have continued to trail the broader market, recording a decline of 20.4 per cent year-to-date while the S&P 500 Index rose 28.5 per cent over the same period. The New York-based alternative asset management firm, which specialises in private equity and real estate strategies, also underperformed the State Street Financial Select Sector SPDR ETF, which saw gains of 4.4 per cent over the past 52 weeks.
Despite this relative weakness in share price, the company delivered solid financial results for the first quarter of 2026. Blackstone reported revenue of $3.6 billion, surpassing Wall Street estimates, alongside adjusted earnings per share of $1.36. This marks the fourth consecutive quarter where the firm has exceeded analysts consensus expectations.
Following the release of the quarterly figures on 23 April, the stock dipped marginally. However, the market response was tempered by a broader consensus of cautious optimism among institutional investors. Piper Sandler analyst Crispin Love maintained a Hold rating for the stock on 27 April but raised the price target from $122 to $130, reflecting continued interest in the firm's fundamentals.
Among the 22 analysts currently covering the stock, the consensus rating remains a Moderate Buy. The collective view is supported by nine Strong Buy ratings, three Moderate Buy ratings, eight Holds, and two Strong Sell ratings. The configuration has shifted slightly more bullish over the past month, with the Street-high price target of $190 implying a potential upside of 54.8 per cent from current levels.
The mean price target across all analysts sits at $145.95, representing an 18.9 per cent premium to current market prices. Looking ahead to the current fiscal year ending in December, expectations project an increase in earnings per share of 6.1 per cent year-on-year to $5.91.
With a market capitalisation of $91.4 billion, Blackstone continues to navigate a complex investment landscape. While the stock has not yet recovered its losses relative to the wider index, the consistent ability to beat earnings forecasts suggests underlying strength that analysts believe warrants a positive long-term outlook.
