The firm upgraded Blackstone shares at the start of 2023 on the belief that investors were over-penalizing Blackstone for its outflows in its Real Estate Income Trust division. "For the multiple to expand further, we'd want to see organic growth supported again by perpetual fund growth, which is currently weighed down by a depressed sentiment for real estate investing." Blackstone shares have rallied nearly 45% year to date. Worthington added that speculation over the stock being added to the S & P 500 has also fueled its rise. To be sure, Worthington thinks the real estate sector will likely "require a drop in rates to see a substantial improvement."

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Persons: it'll, Blackstone . Blackstone, Kenneth Worthington, Worthington, Blackstone, — CNBC's Michael Bloom Organizations: JPMorgan, Blackstone ., Blackstone, Income