JP Morgan says it will wait a little longer before expanding its view on Blackstone. Analyst Kenneth Worthington wrote in a note Friday that Blackstone “has a leading brand in alternative investments, achieved through a combination of successful investments, strong performance, superior fundraising and high shareholder returns.” Nevertheless, Worthington neutralized the Blackstone with more weight. He raised his price target slightly to $111 from $102, implying just 3.2% upside from where the shares closed on Thursday. The firm upgraded Blackstone’s shares in early 2023 on the belief that investors were over-punishing Blackstone for its divestment in its real estate income trust division. However, with fears of a bearish and rising share price in recent months, the analyst now considers the stock’s many positives to be priced in. “To further expand the multiple, we would like to see organic growth again supported by perpetual fund growth, which is currently subdued by depressed sentiment for real estate investments.” Blackstone’s shares are up nearly 45% year to date. Worthington added that speculation about the stock’s inclusion in the S&P 500 also fueled its gains. The company’s second-quarter earnings were released on Thursday, and were generally in line with expectations. Management’s comments about a possible slowdown in deal-making activity in the private equity division would be a tailwind, the analyst said. To be sure, Worthington believes the real estate sector will “need rates to come down to see substantial improvement.” Shares fell 1.6% in premarket trading on Friday. —CNBC’s Michael Bloom contributed to this report.