BlackRock: Compounding Secular Growth at a Discounted Valuation Supports Overweight Rating and 34% Upside

In a report released today, Michael Cyprys from Morgan Stanley reiterated a Buy rating on BlackRock, with a price target of $1,550.00.

Michael Cyprys has given his Buy rating due to a combination of factors tied to BlackRock’s growth profile, profitability, and valuation. He highlights that BlackRock is delivering strong and accelerating organic revenue growth, particularly in base fees, while also expanding operating margins, with management outlining a credible path toward meaningfully higher margin levels over the next several years. The latest quarterly results materially exceeded expectations on earnings and operating income, reinforcing confidence in a mid-teens earnings growth trajectory over the coming five years. At the same time, he notes that the stock trades at a notable discount to both its own historical valuation and to other high-quality financial peers with similar growth characteristics, creating what he views as an attractive entry point.
Cyprys also emphasizes BlackRock’s strategic positioning in several powerful secular trends that can sustain more than 5% organic revenue growth, including the democratization of private markets, the continued build-out of global capital markets, the expansion of ETFs, and emerging opportunities in AI, tokenization, and digital assets. He argues that BlackRock’s platform, scale, and technology capabilities leave it especially well placed to capture these growth vectors and compound earnings over time. Reflecting these dynamics, he maintains an Overweight (Buy) rating with a price target of $1,550, implying roughly 34% upside from current levels. Overall, the combination of solid execution, improving fundamentals, and discounted valuation underpins his positive stance on the shares.

Cyprys covers the Financial sector, focusing on stocks such as Marketaxess Holdings, Tradeweb Markets, and Nasdaq. According to TipRanks, Cyprys has an average return of 3.9% and a 52.94% success rate on recommended stocks.

In another report released today, Deutsche Bank also maintained a Buy rating on the stock with a $1,380.00 price target.