Blackstone Q3 beat ‘relatively low-quality,’ says Wells Fargo

Wells Fargo notes that Blackstone reported Q3 distributable EPS and fee-related EPS that beat consensus forecasts, but contends the upside was “fairly low-quality” and mainly involved favorable variances for the tax rate, for percentage attributable to common, and for net realizations, which the firm calls “lower quality line items.” Overall, this was “a relatively soft quarter” from Blackstone, but the firm adds that Q3 was “expected to be a transitional quarter” from the weak first half to Q4 and 2025, where it says “fundamentals are set to improve markedly.” The firm has an Overweight rating and $169 price target on Blackstone shares.