BlackRock’s Strong Performance Amid Market Trends
New York-based BlackRock, Inc. (BLK) is a leading investment management firm that provides a variety of portfolios including single and multi-asset options. These include equities, fixed income, alternatives, and money market instruments. With a market cap of $160.5 billion, the company manages open-end and closed-end mutual funds, offshore funds, unit trusts, and alternative investment vehicles such as structured funds.
Over the past year, shares of BlackRock have performed better than the overall market. Specifically, BLK has gained 42.5% in the last 52 weeks, while the S&P 500 Index ($SPX) has seen a 31% increase. Year-to-date, BlackRock’s stock has risen by 27.7%, in contrast to SPX’s 25.1% gain.
However, comparing within its sector, BLK has not kept pace with the Financial Select Sector SPDR Fund (XLF), which achieved a 43.8% increase over the past 52 weeks and a YTD return of 34.9%.
As reported on Nov. 6, BlackRock is set to launch a $1.3 billion private credit continuation fund. This fund will include about 300 first-lien loan holdings, aiming to enhance liquidity for current investors. This announcement contributed to a 1.5% rise in the company’s stock price.
Additionally, the company’s stock jumped 3.6% on Oct. 11 following a strong Q3 earnings report. Adjusted earnings rose by 5% year-over-year to $11.46, while revenue climbed 15% annually to $5.03 billion. This revenue growth was mainly due to increased organic base fees and higher performance fees. Furthermore, BlackRock’s assets under management (AUM) hit a record of $11.5 trillion, likely boosting investor confidence.
For the fiscal year ending in December, analysts predict BLK’s earnings per share (EPS) will increase by 14.3% year-over-year, reaching $43.17. The company’s recent history indicates strong earnings surprises, having surpassed consensus estimates in each of the last four quarters.
Among the 18 analysts tracking BlackRock, the consensus rating is a “Strong Buy.” This rating includes 14 “Strong Buy,” two “Moderate Buy,” and two “Hold” recommendations.
The outlook has become more optimistic compared to three months ago, where only 12 analysts had a “Strong Buy” rating.
Goldman Sachs analyst Alexander Blostein maintained a “Buy” rating on Oct. 12, increasing the price target for BLK to $1,118, which suggests a modest upside of 7.9% from current levels. The average price target is $1,097.70, indicating a potential 5.9% gain, while the highest target of $1,245 presents a notable upside 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
