BlackRock climbs after two brokerages raise price targets
BLK•BlackRock shares rose after J.P. Morgan lifted its price target to $1,435 from $1,364 and Jefferies raised its target to $1,260 from $1,222. J.P. Morgan expects Q3 iShares inflows of $51 billion in equities and $65 billion in fixed income.
1. Brokerages raise targets
J.P. Morgan maintained its overweight rating on BlackRock and raised its price target to $1,435 from $1,364. The brokerage expects $51 billion in equity and $65 billion in fixed-income iShares inflows in Q3, supporting solid net sales.
2. Growth and valuation
J.P. Morgan sees iShares as a key organic growth driver and cited further growth opportunities in private markets, retail, digital and international distribution. It said integration of BlackRock’s private-market acquisitions is progressing in the right direction and valuation remains attractive. Jefferies raised its target to $1,260 from $1,222; 18 of 20 brokerages rate the stock buy or higher, while two rate it hold, and the median price target is $1,300.
3. Trading figures
BlackRock traded at 16.96 times expected earnings per share over the next 12 months, compared with an industry median of 10.97, and was up 17.07% year to date.
