Barclays sees a challenging near-term ahead for Blackstone after the investment firm on Thursday limited withdrawals from its large retail real estate fund.
The bank downgraded shares of Blackstone to equal weight from overweight and cut its price target to $90 from $98.
"In November, BREIT repurchased ~$1.3B of shares, representing ~43% of of redemption requests in the month, indicating just over $3B of total redemption requests in November, nearly doubling month over month," said Budish.
While offshore investors represent about 20% of the fund, they make up roughly 70% of withdrawals this year.
Despite the near-term pressures on the fund, Barclays is still optimistic on the longer-term retail opportunity for alternative assets and sees Blackstone as a well-positioned beneficiary.