BlackRock (BLK), the world’s largest asset manager, says the war in Iran is over and that now is the time for investors to buy stocks.
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The Wall Street firm has raised its outlook for U.S. stocks this year, saying future impacts from the Iran war are likely to be contained, and that strong corporate earnings will create a favorable backdrop for the market heading into the back half of the year.
BlackRock, which has $14 trillion of assets under management, said in its weekly market note that it has raised its rating on U.S. equities to a Buy-equivalent overweight from neutral previously. Developments in the Iran war, in particular, have BlackRock analysts feeling bullish, saying that the conflict is now likely over and that prospects are good for a lasting ceasefire.
BlackRock’s Bull Case for Stocks
In its note to clients, BlackRock wrote that, “We saw two signposts that would lead us to re-up risk after reducing it a few weeks ago. First, tangible evidence of actions that would reopen flows through the Strait of Hormuz. And second, visibility on the lingering macro impact being contained.”
BlackRock also expects corporate earnings for this year’s first quarter to be strong, with companies listed in the S&P 500 index expected to post a collective 12.6% profit increase, according to data from FactSet (FDS). BlackRock expects technology profits to grow 45% this year.
Is BLK Stock a Buy?
BlackRock’s stock has a consensus Strong Buy rating among 11 Wall Street analysts. That rating is based on 10 Buy and one Hold recommendations issued in the last three months. The average BLK price target of $1,239.82 implies 22% upside from current levels.
