New business model leads JPMorgan to raise BlackRock shares target By

New business model leads JPMorgan to raise BlackRock shares target By

On Tuesday, JPMorgan made an adjustment to BlackRock (NYSE:)’s shares target, raising it to $767 from $742, while maintaining a Neutral rating on the stock. The revision comes as the firm updates its model in anticipation of BlackRock’s first-quarter 2024 earnings.

According to the investment bank, improved market conditions throughout the first quarter have likely provided a roughly 4% boost to BlackRock’s ending Assets Under Management (AUM), with net flows contributing an additional 2%.

The analyst noted that equity markets were the primary driver of asset appreciation, whereas fixed income markets remained relatively unchanged or declined during the same period.

Despite keeping overall long-term flow estimates for the quarter largely the same, the firm anticipates that equity flows were stronger and fixed income flows weaker than previously expected. BlackRock reportedly saw a surge in equity flows in the final weeks of March, while fixed income flows were positive but inconsistent throughout the quarter.

In a notable development, BlackRock launched its first ETF, named IBIT, which has garnered significant attention by raising over $10 billion in net new money. However, JPMorgan predicts that the influx of funds into the Bitcoin ETF will slow down and will have a minimal impact on BlackRock’s earnings, despite the initial boost to organic growth in the first quarter of 2024.

InvestingPro Insights

As BlackRock (NYSE:BLK) navigates through a dynamic financial landscape, real-time data from InvestingPro provides a deeper look into the company’s performance and market position. BlackRock’s market capitalization stands at a robust $123.14 billion, showcasing its significant presence in the industry. The firm’s P/E ratio is currently at 22.46, which may indicate a premium valuation given its near-term earnings growth prospects. Additionally, BlackRock has displayed a strong commitment to shareholder returns, having raised its dividend for 14 consecutive years and maintained payments for 22 consecutive years, a testament to its financial stability and investor-friendly approach.

InvestingPro Tips highlight that four analysts have recently revised their earnings estimates upwards for BlackRock, suggesting a positive outlook on the company’s upcoming performance. Moreover, BlackRock’s liquid assets have been reported to exceed its short-term obligations, reflecting a solid balance sheet. For those seeking more comprehensive analysis, InvestingPro offers even more tips on BlackRock, which can be accessed through a subscription. Use coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With these insights, investors can make more informed decisions regarding BlackRock’s positioning in the market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Source link