Blackstone stock price forms a golden cross: rating upgrade, 10% upside

Blackstone (NYSE: BX) stock price recovery gained steam after the company published strong financial results. The shares surged to a high of $108 on Thursday, the highest level since November last year. It has surged by more than 51% from the lowest level this year.

Assets hit $1 trillion

Blackstone has had a strong performance in the past decade. For one, the company’s total assets under management (AUM) stood at over $88 billion in 2008. They have now hit a record high of over $1 trillion.

As a result, its revenue has grown in the past few months. Total revenue rose from $6.5 billion in 2013 to more than $8 billion. Its best year was in 2021 when its revenue soared to over $21 billion.

Blackstone published mixed financial results on Thursday. Its revenue came in at over $2.35 billion, about 43.4% lower than what it made in the same period last year. The revenue figure was about $51.66 million lower than estimates.

Blackstone’s total inflows jumped by $30 billion in the second quarter and over $158 billion in the past 12 months. This growth was driven by its private credit business. It now has almost $200 billion in dry powder.

Blackstone is in a strong position going forward. For one, the company now has over $200 billion in dry powder that it will start deploying as market conditions improve. Further, there are signs that corporate deal-making is making a comeback as inflation falls.

For Blackstone, the biggest catalyst is its growing total assets since the company makes most of its money from fees. And these fees are usually tied to its total assets. Most importantly, the company is expanding its business in low volatile insurance business and private credit. In a statement, the company’s Jon Gray said:

“In the $40 trillion insurance channel, we manage $174 billion today. Inflows from this channel were over $7 billion in the second quarter with more than $4 billion from our largest four clients.”

Blackstone stock price forecast

The Blackstone share price has been in a strong bullish trend in the past few months. The stock moved above the key psychological level at $100.21 (February high). Most importantly, the shares have formed a golden cross, when the 50-day and 200-day moving averages (MA) make a bullish crossover. 

Therefore, the shares will likely continue soaring as buyers target the next key resistance point at $118.25 (June 3rd, 2022 high). This price is about 10% higher than the current price.