Deutsche Bank Has Buy Rating On Blackrock Following Earnings (BLK)

BlackRock, Inc. BLK shares are higher today after reporting earnings, and Deutsche Bank is out with a research report breaking down those earnings. It has a Buy rating and a $230 price target on shares. In a note to investors, Deutsche Bank writes, "BLK reported adj EPS of $2.96 (inc $0.12 tax beni, or $2.84 ex the beni), ahead of our/Street est of $2.78/$2.75, despite seasonal headwinds (lower perf fees & less calendar days). Overall, core trends were mostly favorable, as core long term flows improved to $16B from ‐$15B in 4Q (pipeline in‐ creased to $82B from $73B), though dis‐synergies remained (but declined by >50% from $39B in 4Q to $18B), long term perf remains strong, and while expenses were well managed, margins declined given the expected drop in perf based revs. Given improving flows/healthy pipeline, potential for operating leverage & buybacks, and an attractive valuation, we like the risk/reward and & maintain our Buy." Shares of Blackrock are up $3.79 to $197.51, a gain of early 2% this morning.