Citigroup Reiterates Buy, $18 Target on Blackstone

Citigroup maintains its Buy rating and $18 target price on Blackstone Group (NYSE: BX) following sell-side lunch with senior management that focused, among others, on abundant PE opportunities.

Citi says, “Investment activity remains high, boding well for deployment, with an emphasis in China as valuations normalize and Finance/Energy globally, with business well poised to purchase distressed/dislodged assets across developed economies; after long dormancy, BX is the busiest in years in Europe as banks de-lever. Management continues to see ~20% IRR in traditional mandates and mid-teens returns in more specialized areas.”

BX closed at $13.88 per share on Tuesday.