BlackRock Posts Mixed Q1 Results; Analysts Say Buy

BlackRock, Inc. (NYSE: BLK) has reported mixed results for the first quarter of 2022, as its earnings surpassed but revenues lagged estimates. The global investment manager offers investment management, risk management and advisory services.

Revenue & Earnings

Blackrock reported quarterly revenues of $4.69 billion, up 7% from the same quarter last year. This growth was primarily driven by a 6.7% year-over-year increase in revenues from investment advisory, administration fees and securities lending. Yet, the figure failed to surpass the consensus estimate of $4.7 billion.

The company reported earnings per share (EPS) of $9.52, up 18.4% year-over-year, surpassing consensus estimates of $8.84 per share.

Meanwhile, BlackRock’s total net flows for the quarter stood at $86.4 billion, which represents a decline of 49.7% from the year-ago period. Total assets under management rose 6% to $9.57 trillion.

CEO’s Comments

The CEO of Blackrock, Laurence D. Fink, said, “I am incredibly excited by the opportunities ahead of us and believe BlackRock is well-positioned to continue generating durable, differentiated organic growth and delivering value for all of our stakeholders.”

“As the world continues to face geopolitical and economic uncertainty, our investments over the years to build BlackRock’s allweather platform position us well to advise our clients and help them pursue their long-term financial goals,” he added.

Stock Rating

Following the release, Jefferies analyst Daniel Fannon assigned a Buy rating to the stock and raised the price target to $873 from $865. The new price target implies upside potential of 22% from current levels.

Meanwhile, Alexander Blostein of Goldman Sachs reiterated a Buy rating on BlackRock with a price target of $850 (18.8% upside potential). The analyst found the company’s Q1 performance to be “mixed” as management fees was absent and lower fee rates was another headwind.

Overall, the Street is bullish on the stock and has a Strong Buy consensus rating based on 11 Buys and three Holds. Blackrock’s average price target of $887.86 implies upside potential of 24.1% from current levels. Shares have tanked 8.8% over the past year.

Positive Sentiment

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on BlackRock, as 10.5% of investors increased their exposure to BLK stock over the past 30 days.

Takeaway

Despite global uncertainties emerging from the Ukraine-Russia war and rising prices, BlackRock’s assets under management have seen a year-over-year increase. Also, the company continues to hold strong fundamentals, as can be seen in its return on equity of 16.2%, which is impressive.

Further, the bullish attitude of analysts, bloggers, retail investors, and hedge funds toward BLK makes this stock attractive.

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