Barclays Cuts Blackstone Price Target to $126; AML Co-Funding Deal with J&J
BlackRock’s HPS Corporate Lending Fund capped withdrawals after 9.3% of shares were requested, triggering contagion risk concerns that placed Blackstone’s private credit vehicles under heightened scrutiny. Barclays cut its price target on Blackstone to $126 from $164, revealing a co-funding agreement with Johnson & Johnson for AML candidate bleximenib.
1. Liquidity Concerns in Private Credit
BlackRock’s HPS Corporate Lending Fund blocked redemptions when 9.3% of shares were requested—nearly double its 5% quarterly limit—signaling that asset illiquidity could force steep markdowns. This development has intensified investor focus on Blackstone’s credit strategies and the broader vulnerability of private lending vehicles.
2. Barclays Cuts Price Target
On March 2, Barclays lowered its Blackstone price target from $164 to $126 while maintaining an Equal Weight rating, citing weaker flow assumptions and delayed earnings contributions from its business development company portfolio. The revision reflects caution over near-term growth prospects in alternative asset management.
3. AML Co-Funding Agreement
Blackstone Life Sciences and Johnson & Johnson agreed to co-fund ongoing clinical trials of bleximenib, an investigational oral menin inhibitor targeting acute myeloid leukemia. This marks their first joint financing pact and aims to accelerate development of the candidate facing challenging treatment hurdles and low survival rates in AML.