Blackstone, Fortress estimates cut by BofA

Banc of America Securities cuts its earnings estimates and price targets on Blackstone Group and Fortress Investment Group.
JUL 07, 2008
By  Bloomberg
Banc of America Securities LLC has cut its earnings estimate and price targets on Blackstone Group LP and Fortress Investment Group, citing challenging market conditions, according to a Reuters report. The New York-based investment banking subsidiary of Charlotte, N.C.-based Bank of America Corp. cut second-quarter earnings estimates on New York-based Blackstone to 5 cents from 17 cents per share, and Fortress to 11 cents from 15 cents per share. It also cut the price target on Blackstone to $21.30 from $22.50 and on Fortress to $20.10 from $21. “New financial sponsor deals continue to be light as are deal exits ... One bright spot for the second quarter is industry hedge fund returns,” analyst Michael Hecht said in a note to clients. Banc of America Securities expected Fortress to perform better then Blackstone in the near term because hedge fund earnings are likely to hold up better than private equity and new deals, the note said. Fortress gets half of its earnings from its hedge fund business, compared to 15% to 20% for Blackstone.

Latest News

NASAA moves to let state RIAs use client testimonials, aligning with SEC rule
NASAA moves to let state RIAs use client testimonials, aligning with SEC rule

A new proposal could end the ban on promoting client reviews in states like California and Connecticut, giving state-registered advisors a level playing field with their SEC-registered peers.

Could 401(k) plan participants gain from guided personalization?
Could 401(k) plan participants gain from guided personalization?

Morningstar research data show improved retirement trajectories for self-directors and allocators placed in managed accounts.

UBS sees a net loss of 111 financial advisors in the Americas during the second quarter
UBS sees a net loss of 111 financial advisors in the Americas during the second quarter

Some in the industry say that more UBS financial advisors this year will be heading for the exits.

JPMorgan reopens fight with fintechs, crypto over fees for customer data
JPMorgan reopens fight with fintechs, crypto over fees for customer data

The Wall Street giant has blasted data middlemen as digital freeloaders, but tech firms and consumer advocates are pushing back.

The average retiree is facing $173K in health care costs, Fidelity says
The average retiree is facing $173K in health care costs, Fidelity says

Research reveals a 4% year-on-year increase in expenses that one in five Americans, including one-quarter of Gen Xers, say they have not planned for.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.