BlackRock's Upcoming Earnings Spark Positive Projections From This Wall Street Analyst

Morgan Stanley analyst Michael Cyprys has pointed out that BlackRock, Inc BLK is expected to announce its earnings before the market opens on Jan. 12.

Compared to the consensus, Cyprys forecasts a 0.6% increase in revenues but anticipates a 1.7% rise in adjusted expenses, resulting in a 1.5% decrease in both adjusted operating income and earnings per share (EPS) for Q4 2023.

As the earnings report approaches, Cyprys is eager to hear BlackRock's insights on several key areas. These include the potential for growth in fixed income, the outlook for organic growth in the current market conditions, prospects for transformative mergers and acquisitions, the impact of varying beta on fee rates, the influence of foreign exchange tailwinds and asset mix, strategies for managing and adapting expenses, the company's strategic priorities for the upcoming year, and management's latest perspectives on areas of secular growth.

Also Read: Bitcoin ETF, Goldman Sachs and BlackRock - What's Going On?

The analyst bumped up his price target from $897 to $952, driven by +6.2% higher FY25 EPS estimates on a 20x target P/E multiple. 

He maintained a selective stance and reiterated his Overweight rating on BlackRock, recently elevating it to his Top Pick. This decision is based on the potential for a rotation into fixed income and a general movement of funds into the markets, from which BlackRock is expected to benefit significantly.

The company's diversified and large-scale business model positions it well to navigate through uncertain macroeconomic conditions, capture a larger share of market flows, and achieve positive organic growth. Additionally, BlackRock's ability to leverage its Aladdin technology platform for growth and strategically pursue transformative mergers and acquisitions from a position of strength further underpins his positive outlook on the company.

Price Actions: BLK shares are trading higher by 0.59% at $788.78 at last check Thursday. 

Now Read: Uncle Sam's Crypto Stash: $8.3B Bitcoin Hoard Threatens Market Plunge

Photo: Shutterstock