How Will Blackstone (BX) Stock Be Affected Today By Russia Pullout?

NEW YORK (TheStreet) -- Blackstone Group LP (BX) , the largest manager of alternative assets, is "giving up on Russia", highlighting how even well-connected western investors are backing away from doing business in the country, the Financial Times reports.

The buyout group has been frustrated in its attempts to find deals in the country since its co-founder Stephen Schwarzman joined the international advisory board of the Russian Direct Investment Fund, a $10 billion government-backed fund, three years ago, the Times said.

Blackstone, which does not have an office in Russia, will not renew the contracts of the consultants it employs in the country, and the move will bring to an end Blackstone's embryonic attempts to break into Russia, the Times added.

 

Blackstone  had no comment.

Shares of Blackstone are slightly higher in pre-market trade

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, notable return on equity, expanding profit margins, good cash flow from operations and solid stock price performance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • BX's very impressive revenue growth greatly exceeded the industry average of 2.5%. 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 company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Capital Markets industry and the overall market, BLACKSTONE GROUP LP's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • The gross profit margin for BLACKSTONE GROUP LP is rather high; currently it is at 54.19%. 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.
  • Net operating cash flow has significantly increased by 265.36% to $863.19 million when compared to the same quarter last year. In addition, BLACKSTONE GROUP LP has also vastly surpassed the industry average cash flow growth rate of -89.07%.
  • Powered by its strong earnings growth of 136.11% and other important driving factors, this stock has surged by 35.30% 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.
  • You can view the full analysis from the report here: BX Ratings Report
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