Wells Fargo analyst Michael Brown maintained a Buy rating on BlackRock yesterday and set a price target of $1,170.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Michael Brown has given his Buy rating due to a combination of factors, despite BlackRock’s somewhat weak second-quarter performance and the market’s negative reaction to their earnings report. The company’s shares fell significantly compared to the broader market and its peers, primarily due to moderate softness in certain metrics and concerns over expense guidance following the HPS acquisition. However, Brown remains optimistic about BlackRock’s strong positioning, particularly in higher fee areas, and views the current pullback as an opportunity to accumulate shares.
Additionally, BlackRock’s guidance indicates potential positive impacts from the HPS acquisition, including an increase in the firm’s average fee rate and expected management and performance fees. Although there were concerns about the compensation ratio and margin implications, Brown believes the underlying economics remain solid. The slight downward revision in the price target reflects a conservative approach to future fee rates and expenses, but overall, the firm’s fundamentals and growth prospects support a Buy rating.
According to TipRanks, Brown is a 5-star analyst with an average return of 12.5% and a 65.37% success rate. Brown covers the Financial sector, focusing on stocks such as Blackstone Group, Carlyle Group, and Charles Schwab.
In another report released yesterday, Jefferies also reiterated a Buy rating on the stock with a $1,210.00 price target.