BlackRock stock rating reaffirmed by TD Cowen on growth outlook

Investing.com - TD Cowen has reiterated its Buy rating and $1,154.00 price target on BlackRock (NYSE:BLK) stock Monday, citing strong organic growth potential through 2030. The stock, currently trading at $977.63, has demonstrated robust financial health with a 14.23% revenue growth over the last twelve months. According to InvestingPro data, BlackRock maintains a "GOOD" overall financial health score, supported by its strong market position and consistent dividend payments spanning 23 consecutive years.

The firm’s analysis suggests BlackRock’s "5%+" organic base fee growth compound annual growth rate (CAGR) through 2030 could actually be closer to approximately 7%, potentially driving adjusted earnings per share to over $100 by 2030, representing a roughly 15% CAGR. This growth projection aligns with BlackRock’s current momentum, as InvestingPro reports four analysts have recently revised their earnings estimates upward for the upcoming period.

TD Cowen’s pro forma scenario analysis indicates valuations ranging from flat to upward of 40% growth, with the firm particularly favoring the risk/reward profile of the investment management giant.

The research note highlighted that current market expectations appear to underestimate BlackRock’s $35 billion revenue target by approximately 300 basis points, despite upcoming platform enhancements.

BlackRock’s pro forma platform, which includes GIP, Preqin, and the pending HPS acquisition set to close July 1, is expected to further strengthen the company’s position in faster growth and more durable growth segments, according to TD Cowen’s assessment.

In other recent news, BlackRock revealed its earnings outlook following a positive revision from TD Cowen, which raised its price target for the asset manager to $1,154, citing an optimistic long-term outlook. The firm increased its earnings per share estimates for 2025-2026, attributing this to higher fee-paying assets under management. Additionally, Keefe, Bruyette & Woods maintained its Outperform rating on BlackRock, emphasizing the company’s growth prospects in private markets and technology segments, which are expected to contribute significantly to revenues by 2030. BlackRock also announced the development of an AI research platform named "Asimov," designed to enhance its investment processes by providing continuous portfolio insights.

In India, Jio BlackRock Investment Advisers, a joint venture with Reliance Industries (NSE:RELI), received approval to operate as an investment advisor, expanding its financial services footprint in the region. Moreover, BlackRock’s shareholders voted on several governance matters, approving executive compensation and the appointment of Deloitte & Touche LLP as the independent auditor for 2025. These developments highlight BlackRock’s strategic initiatives and ongoing growth in both technology and global markets.

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