Blackstone shares gain the most in 16 months on Friday, company seeks to oversee $1 trillion in assets by 2026

September 24, 2018 10:06 am

The largest alternative investment manager worldwide, Blackstone Group LP (BX), said last week that its assets under management could reach $1 trillion by the year 2026. At present, the company oversees $439 billion in assets.

Blackstone shares closed higher for a second consecutive trading session in New York on Friday. It has also been the sharpest daily surge since May 22nd 2017. The stock went up 4.53% ($1.71) to $39.49, after touching an intraday high at $39.84, or a price level not seen since July 23rd 2015 ($40.01).

Shares of The Blackstone Group LP have risen 23.33% so far during the current year, following an 18.46% surge in 2017.

In a presentation, the alternative investment manager said it could oversee $600 billion in assets in the upcoming 2 years, $800 billion in 4 to 6 years and more than $1 trillion in 8 years or so.

Blackstone also noted in the presentation that it had a ”clear path” to generate at least 50% growth of its fee-related earnings in two years or so.

As the firm’s asset base grows, this will also increase its management fee-related earnings – usually up to 2% of the assets under management.

In July, Blackstone’s Chairman and Chief Executive Officer Stephen Schwarzman said that the alternative asset management industry was entering a fundraising ”super cycle” and that Blackstone still had good opportunities for growth.

According to CNN Money, the 12 analysts, offering 12-month forecasts regarding The Blackstone Group LP’s stock price, have a median target of $42.00, with a high estimate of $49.00 and a low estimate of $32.00. The median estimate represents a 6.36% upside compared to the closing price of $39.49 on September 21st.

The same media also reported that 13 out of 15 surveyed investment analysts had rated The Blackstone Group LP’s stock as “Buy”, while 1 – as “Hold”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Blackstone stock are presented as follows:

R1 – $39.63
R2 – $39.77
R3 (Range Resistance – Sell) – $39.91
R4 (Long Breakout) – $40.32
R5 (Breakout Target 1) – $40.81
R6 (Breakout Target 2) – $41.05

S1 – $39.35
S2 – $39.21
S3 (Range Support – Buy) – $39.07
S4 (Short Breakout) – $38.66
S5 (Breakout Target 1) – $38.17
S6 (Breakout Target 2) – $37.93

By using the traditional method of calculation, the weekly levels of importance for The Blackstone Group LP (BX) are presented as follows:

Central Pivot Point – $38.71
R1 – $40.62
R2 – $41.75
R3 – $43.66
R4 – $45.57

S1 – $37.58
S2 – $35.67
S3 – $34.54
S4 – $33.41

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