New York-based BlackRock, Inc. (BLK) is an investment management firm that offers single and multi-asset portfolios investing in equities, fixed income, alternatives, and money market instruments. Valued at a market cap of $160.5 billion, the company also launches and manages open-end and closed-end mutual funds, offshore funds, unit trusts, and alternative investment vehicles, including structured funds.
Shares of this asset management company have outpaced the broader market over the past 52 weeks. BLK has rallied 42.5% over this time frame, while the broader S&P 500 Index ($SPX) has gained 31%. Moreover, on a YTD basis, the stock is up 27.7%, compared to SPX’s 25.1% gain.
However, narrowing the focus, BLK has lagged behind the Financial Select Sector SPDR Fund’s (XLF) 43.8% gain over the past 52 weeks and 34.9% return on a YTD basis.
BLK stated on Nov. 6 that it is preparing to introduce a $1.3 billion private credit continuation fund, which will pool about 300 first-lien loan holdings in an effort to provide liquidity for current investors. The move enhanced investor confidence and led to a 1.5% increase in BlackRock’s stock price.
Moreover, on Oct. 11, shares of BLK jumped 3.6% after its strong Q3 earnings release. Its adjusted earnings increased 5% year-over-year to $11.46, and its revenues also improved 15% on an annual basis, totaling $5.03 billion. The revenue growth was primarily driven by higher organic base fees and higher performance fees. Along with this, the company’s assets under management (AUM) reached a new high of $11.5 trillion, which might have further bolstered investor confidence.
For the current fiscal year, ending in December, analysts expect BLK’s EPS to grow 14.3% year over year to $43.17. The company’s earnings surprise history is promising. It surpassed the consensus estimates in each of the last four quarters.
Among the 18 analysts covering the stock, the consensus rating is a “Strong Buy,” which is based on 14 “Strong Buy,” two “Moderate Buy,” and two “Hold” ratings.
The configuration is more bullish than three months ago, with 12 analysts suggesting a “Strong Buy.”
On Oct. 12, Goldman Sachs analyst Alexander Blostein maintained a “Buy” rating on BLK and raised its price target to $1118, which indicates a modest 7.9% potential upside from the current levels.
The mean price target of $1,097.70 represents a 5.9% upside from BLK’s current price levels. The Street-high price target of $1,245 suggests a modest upside potential of 20.1%.
On the date of publication, Neharika Jain 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. More news from Barchart- Is Micron Stock a Buy Before 2024 Ends?
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