CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We keep our 12-month target of $750, valuing BLK shares (currently yielding 3.1%) at 18.3x our 2024 EPS estimate of $41.03 and 17x our 2025 EPS estimate of $44.05, versus its three-year average forward multiple of 20x and a peer average of 13x. We lift our 2023 EPS view by $2.41 to $37.52 after Q3 EPS of $10.91 versus $9.55 topped our $8.50 EPS estimate and the $8.34 consensus view on 5% higher revenues with slightly wider operating margins (42.3% versus 42.0%) due to 14% higher AUM and 20% higher tech revenues. But the shares’ tepid performance today likely reflects the disappointing Q3 fund flow trends, with Q3 inflows of $3B versus $16.9B amid $36B institutional index outflows and $13B in precision ETF outflows. We see 2023 as a transitional year for BLK as macro and market forces shift and pressure fund flows, though we expect BLK’s breadth and depth to leave it better positioned than most peers. We also expect BLK to actively pursue acquisitions to increase its presence in technology and alternatives.