Blackstone to Auction Off Britain’s Butlin’s – Report


Blackstone (BX) is planning to auction Britain’s resort chain Butlin’s. Citing Sky News, Reuters reports that the sell-off could happen next year. The likely reason is that many Britons are opting to stay at home, rather than spending time in resorts, in the wake of the COVID-19 pandemic. BX shares fell 3.56% to close at $142.96 on November 26.

Blackstone is one of the leading investment companies in the U.S. Founded in 1985, it operates through the following segments: Private Equity, Real Estate, Hedge Fund Solutions, and Credit & Insurance.

Butlin’s Auction

The private equity firm has already engaged the services of investment bank Rothschild to oversee the auction of the vacation camp group. Bourne Leisure, which is Butlin’s parent company, is one of Britain’s biggest vacation providers.

Blackstone bought Bourne Leisure this year. Butlin, on the other hand, was founded more than eight decades ago and currently offers seaside vacations at resorts. (See Top Smart Score Stocks on TipRanks)

Stock Rating

Early November, Bank of America analyst Craig Siegenthaler reiterated a Buy rating on Blackstone with a $182 price target, implying 27.31% upside potential to current levels. According to the analyst, the company is well-positioned to grow in the retail channel. Consequently, the analyst expects earnings to grow above expectations in the future.

Consensus among analysts is a Strong Buy, based on 9 Buys and 3 Holds. The average Blackstone price target of $150.91 implies a 5.56% upside potential to current levels.

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