Morgan Stanley Sees Good Return Forecast for The Blackstone Group LP

In a report published Monday, Morgan Stanley analyst Matthew Kelley reiterated an Overweight rating and $37.00 price target on

. In the report, Morgan Stanley noted, “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 2013-17, 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 ~$7.61/unit value of future carry), and then in PE as BCP V crosses hurdle. We forecast an 8.6% divi yield in 2015.” The Blackstone Group LP closed on Thursday at $31.34.