Selected stock price target news of the day - October 23rd, 2023

By: Matthew Otto

Blackstone’s Q3 Earnings Decline: Navigating Challenges

Blackstone reported a 12% year-on-year decline in its third-quarter distributable earnings, exceeding analysts’ expectations. The firm’s distributable earnings, representing cash available for dividends, dropped to $1.2 billion from $1.4 billion a year earlier. This translated to 94 cents per share, missing the average analyst estimate of $1.01. Net profit from asset sales fell by 36% to $259.4 million. Blackstone’s real estate division took a substantial hit, with realized performance revenue plummeting by 88% to $17.4 million. Fee-related earnings, encompassing management and advisory fees, also declined by 5% to $1.12 billion.

Analyst Kenneth Leon from CFRA noted that Blackstone is confronting a moderating outlook, anticipating that higher interest rates will impact fee earnings, fundraising, and investment realizations. Consequently, Leon downgraded his rating on Blackstone from buy to hold. Despite the challenges, Blackstone demonstrated resilience in its private equity portfolio, which grew by 2.4%, outperforming the S&P 500’s 3.65% decline during the same period. Infrastructure funds recorded an 11% gain, while private credit funds appreciated by 4.6%. Opportunistic real estate funds experienced a 2% drop. During the quarter, Blackstone raised $25.3 billion in new capital, spent $12.4 billion on acquisitions, and retained $200.6 billion in unspent capital.

Analyst Adjusted Ratings and Price Targets After Q3 Earnings Report

Oppenheimer’s Chris Kotowski Maintained an Outperform rating but lowered the price target from $107 to $105.
JMP Securities’ Brian McKenna Maintained a Hold rating on Blackstone Inc.
Wells Fargo’s Timothy O’Shea Keeps an Overweight rating and lowered the price target from $118 to $113.
BMO Capital’s Rufus Hone Reiterated a Market Perform rating and reduced the price target from $97 to $94.
Morgan Stanley’s Michael Cyprys Maintained an Overweight rating but reduced the price target from $125 to $120.

Which Analyst has the best track record to show on BX?

Analyst Finian O’shea (WELLS FARGO) currently has the highest performing score on BX with 12/16 (75%) price target fulfillment ratio. His price targets carry an average of $12.87 (19.96%) potential upside. Blackstone Group stock price reaches these price targets on average within 160 days.

Autoliv’s Q3: Record Sales, 40% Income Surge

Autoliv reported financial results for the third quarter of 2023 with net sales reaching $2.6 billion. This reflects a 13% increase compared to the same period last year. Autoliv’s adjusted operating income saw a surge of over 40%, reaching $243 million, setting a new record for a third quarter since the Veoneer spin-off. The adjusted operating margin also experienced a significant boost, increasing by close to 2 percentage points year-over-year and over 4 percentage points sequentially.

Autoliv’s strategic initiatives, such as automation and digitalization, contributed to increased labor efficiency. Despite the ongoing UAW strike in North America impacting the automotive industry, Autoliv reported a limited impact on its Q3 results, with an estimated loss of less than $2 million in sales. Looking ahead, the company anticipates further improvements in the fourth quarter, with an expected adjusted operating margin improvement of around 1.5 to 2 percentage points compared to the same period last year.

Analysts Maintains Rating and Increase Price Targets Amid Positive Outlook

Wells Fargo analyst Colin Langan maintained an Equal-Weight rating and raised the price target from $99 to $100.
Barclays analyst Dan Levy also reiterated an Equal-Weight rating and increased the price target from $97 to $100.

Which Analyst has the best track record to show on ALV?

Analyst Itay Michaeli (CITI) currently has the highest performing score on ALV with 19/21 (90.48%) price target fulfillment ratio. His price targets carry an average of $12.92 (17.02%) potential upside. Autoliv stock price reaches these price targets on average within 163 days.

American Express Reports Q3 2023 Results with $15.4 Billion in Revenues

American Express reported financial results for Q3 2023, with total revenues reaching $15.4 billion, showcasing a 13% year-over-year increase. Earnings per share also hit $3.30, reflecting a substantial 34% growth compared to the same period last year. The growth was underpinned by a 7% year-over-year increase in card member spending, with a notable 9% surge in the US consumer segment and a significant 15% rise in the International Card Services segment.

Furthermore, Amex highlighted its success in attracting Millennials and Gen Z consumers, who contributed to an 18% year-over-year increase in spending, comprising more than 60% of all new consumer account acquisitions globally in the quarter. The company’s strategic investments and focus on fee-based products were evident in the 19% year-over-year growth in net card fee revenues. The financial performance has fueled confidence in Amex’s ability to achieve its full-year revenue and EPS growth targets, with a continued commitment to delivering annual revenue growth exceeding 10% and mid-teens EPS growth in 2024 and beyond.

Analysts Adjust Ratings and Price Targets for American Express

BMO Capital’s James Fotheringham maintained a Market Perform rating and lowered the price target from $194 to $188.
Morgan Stanley’s Betsy Graseck reiterated an Overweight rating and lowered the price target from $185 to $175.

Which Analyst has the best track record to show on AXP?

Analyst David George (BAIRD) currently has the highest performing score on AXP with 7/10 (70%) price target fulfillment ratio. His price targets carry an average of $20.74 (20.43%) potential upside. American Express stock price reaches these price targets on average within 130 days.