On Thursday, TD Cowen reaffirmed its positive stance on shares of BlackRock, Inc. (NYSE:BLK), raising the firm's price target on the asset manager's shares to $1,077 from the previous target of $960. The investment firm maintained a Buy rating on the stock.
The adjustment comes as BlackRock prepares to announce its third-quarter earnings for 2024, which are expected to be released before the market opens on Friday, October 11. TD Cowen made slight revisions to its third-quarter 2024 and full-year 2024-2025 adjusted earnings per share (EPS) estimates for BlackRock. The firm's updated projections are slightly below the consensus for the third quarter of 2024 but align with the expectations for 2025.
The new price target takes into account the recent strategic moves by BlackRock, including the completion of the acquisition of Green Investment Group (GIP) on October 1, 2024, and the anticipated finalization of the Preqin deal, expected to close in the fourth quarter of 2024. These transactions are seen as integral to BlackRock's growth strategy and are reflected in the revised valuation.
TD Cowen anticipates a positive earnings call, suggesting that BlackRock's strategic initiatives and market position will likely be topics of constructive discussion. The firm's commentary indicates a belief in the continued growth potential for BlackRock, supported by recent business developments and acquisitions.
In other recent news, investors are anticipating an important corporate earnings season, with expectations high for robust profit growth to justify current stock valuations. Notably, UBS equity strategists predict that S&P 500 earnings have risen by 4.7% in the third quarter compared to the same period last year. These developments are recent and crucial for investors to track.
Microsoft Corp (NASDAQ:MSFT) has announced plans to invest $4.8 billion over the next two years to expand its artificial intelligence and cloud services infrastructure in northern Italy. This investment marks Microsoft's most significant financial commitment in Italy to date.
BlackRock Finance, Inc. recently completed a series of strategic transactions, leading to significant organizational changes. The company has merged with Banana Merger Sub, Inc., resulting in BlackRock Finance becoming a wholly owned subsidiary of the newly named BlackRock, Inc.
The world's largest asset manager, BlackRock Inc (NYSE:BLK)., has also announced a collaboration with banking giant Santander (BME:SAN) to invest up to $1 billion each year in various financing opportunities. The investment will focus on project finance, energy finance, and infrastructure debt through structured transactions.
BlackRock Inc. has received the Italian government's approval to increase its ownership in Leonardo, a defense and aerospace group, to hold a stake exceeding 3%. This approval aligns with Italy's regulatory requirements for investments in strategic sectors.
InvestingPro Insights
BlackRock's strong market position, as highlighted by TD Cowen's positive outlook, is further supported by real-time data from InvestingPro. The company's market capitalization stands at an impressive $141.75 billion, underscoring its significant presence in the asset management industry.
InvestingPro Tips reveal that BlackRock has raised its dividend for 14 consecutive years, demonstrating a commitment to shareholder returns that aligns with its robust financial performance. This is particularly relevant given TD Cowen's optimistic price target and Buy rating.
Moreover, BlackRock's revenue growth of 7.68% over the last twelve months as of Q2 2024 suggests continued expansion, which could contribute to the positive earnings call anticipated by TD Cowen. The company's strong return over the last three months, as noted in another InvestingPro Tip, corroborates the market's confidence in BlackRock's strategic moves, including the recent acquisitions mentioned in the article.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips that could provide further insights into BlackRock's financial health and market performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.