NEW YORK (TheStreet) -- Shares of Blackstone Group LP (BX) are up 2.12% to $33.68 in pre-market trade after it was reported that the private equity firm is nearing a deal to acquire Royal Dutch Shell's (RDS.A)half-stake in a huge Louisiana gas field, sources told the Wall Street Journal.
The deal could value Shell's stake in the asset at over $1 billion, sources said.
The deal includes Shell's half-stake in a joint venture that owns more than 350,000 acres within the Haynesville Shale, a gas-filled rock formation buried deep in northern Louisiana and east Texas, the Journal said.
TheStreet Ratings team rates BLACKSTONE GROUP LP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate BLACKSTONE GROUP LP (BX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- BX's very impressive revenue growth greatly exceeded the industry average of 2.6%. Since the same quarter one year prior, revenues leaped by 56.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The gross profit margin for BLACKSTONE GROUP LP is rather high; currently it is at 53.06%. It has increased significantly from the same period last year. Along with this, the net profit margin of 22.89% is above that of the industry average.
- Powered by its strong earnings growth of 136.11% and other important driving factors, this stock has surged by 43.36% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- BLACKSTONE GROUP LP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BLACKSTONE GROUP LP increased its bottom line by earning $1.98 versus $0.40 in the prior year. This year, the market expects an improvement in earnings ($3.84 versus $1.98).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 144.8% when compared to the same quarter one year prior, rising from $211.15 million to $517.02 million.
- You can view the full analysis from the report here: BX Ratings Report