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New York-based BlackRock, Inc. (BLK) is the world’s largest asset management firm. It provides various investment and technology services to institutional and retail clients. With a market cap of $131.2 billion, BlackRock’s operations span various countries in the Americas, Europe, Asia-Pacific, Africa, and internationally.
Shares of the asset manager have outperformed the broader market over the past year. Over the past 52 weeks, BLK has gained 30.7%, outpacing the S&P 500 Index’s ($SPX) 27.5% returns. However, in 2024, BLK is up 8.8%, underperforming SPX’s 17.8% gains on a YTD basis.
Zooming in further, BLK has lagged behind the S&P 500 Financials Sector SPDR’s (XLF) 31.1% returns over the past 52 weeks and 18.5% gains on a YTD basis.
Shares of BlackRock saw a marginal decline following the release of its Q2 earnings on Jul. 15. Despite a 7.7% annual increase in total revenue, reaching $4.8 billion, it missed Wall Street’s expectations. However, the stock quickly rebounded, rising 2.6% in the subsequent trading session. The company saw impressive growth in profitability, with net income attributable to shareholders surging by 9.4% to $1.5 billion, while adjusted EPS rose 11.6% annually to $10.36, surpassing consensus estimates by 4%.
For the current fiscal year, ending in December, analysts expect BlackRock to report an EPS growth of 9.5% yearly to $41.34. Moreover, the company’s earnings surprise history is robust. It beat the consensus estimates in all of the last four quarters.
Among the 17 analysts covering the BLK stock, the consensus rating is a “Strong Buy.” That’s based on 13 “Strong Buy” ratings, two “Moderate Buys,” and two “Holds.”
This configuration is slightly more bullish than two months ago when 12 analysts recommended a “Strong Buy” rating.
On Aug. 15, Deutsche Bank (DB) analyst Brian Bedell maintained a “Buy” rating with a price target of $937.
BLK’s mean price target of $925.12 represents a premium of 4.8% from current price levels. The Street-high target of $1,036 indicates a potential upside of 17.3%.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
