UPDATE: Morgan Stanley Reiterates Overweight Rating, Raises PT on The Blackstone Group LP on Positive Outlook

In a report published Wednesday, Morgan Stanley analyst Matthew Kelley reiterated an Overweight rating on The Blackstone Group LP (NYSE: BX), and raised the price target from $35.00 to $37.00.In the report, Morgan Stanley noted, “In our view, BX offers the best combination of robust, diversified AuM growth and rising distributions, a significant positive given investor demand for yield. We forecast best-in-class 11% fee-paying AuM growth 2013-17e, as BX's diversified platform offers an ideal one-stop-shop for Pensions & SWFs increasingly looking for solutions with fewer GPs. As a result, steadier fee-related earnings drive up the stock's floor value. We expect BX shares to rise as realizations pick up in 2014-15, first in Real Estate (where we estimate ~$7/unit value of future carry), and then in PE as BCP V crosses hurdle. We forecast a 7.7% divi yield in 2015.”The Blackstone Group LP closed on Tuesday at $34.19.