Private equity major Blackstone, Inc. (NYSE:BX) recently revealed that the funds managed by Blackstone Growth have entered into a definitive agreement to acquire majority ownership of SPF-focused skincare brand, Supergoop!. The terms of the deal were not disclosed.
Following the news, shares of the company declined 2.9% in Monday’s trading session. However, it pared its losses slightly and was trading 1.5% higher in pre-market trading at the time of writing.
Strategic Impact
With this investment, Blackstone will now own one of the leading brands for skincare over recent years. Further, with its expertise in developing companies, Blackstone’s investment is expected to help Supergoop! with innovations and expand its presence further on both national and international fronts.
Management Commentary
Global Head of Consumer for Blackstone Growth, Ann Chung said, “Supergoop!’s everyday products that look and feel great while providing meaningful protection from sun damage are changing the way people view sunscreen. We’re proud to support the continued expansion of this business and to welcome Holly, Amanda and their incredible management team into the Blackstone family.”
Price Target
Recently, Deutsche Bank analyst Brian Bedell reiterated a Buy rating on the stock. The analyst, however, raised the price target from $152 to $190, which implies upside potential of 58.7% from current levels.
The Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 9 Buys and 4 Holds. The average Blackstone price target of $152.92 implies upside potential of 27.7% from current levels. Shares have gained about 85.8% over the past year.
Blogger Opinions
TipRanks data shows that financial blogger opinions are 90% Bullish on the stock, compared to the sector average of 70%.
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