Morgan Stanley raises BlackRock stock price target on higher AUM

Published 15/07/2025, 13:46
Morgan Stanley raises BlackRock stock price target on higher AUM

Investing.com - Morgan Stanley (NYSE:MS) raised its price target on BlackRock (NYSE:BLK) to $1,247.00 from $1,164.00 while maintaining an Overweight rating. The stock, currently trading near its 52-week high of $1,112.13, has delivered a strong 38% return over the past year. According to InvestingPro data, analysts maintain a bullish consensus with price targets ranging from $1,000 to $1,261.

The price target increase represents a 7% boost and is based on a price-to-earnings multiple of 22.5x, up from the previous 21x multiple. BlackRock currently trades at a P/E ratio of 26.64x, with InvestingPro analysis indicating the stock is trading above its Fair Value. Get access to 13 additional exclusive ProTips and comprehensive valuation metrics with InvestingPro’s detailed research report.

Morgan Stanley updated its estimates after BlackRock’s peers reported monthly assets under management (AUM), leading the firm to raise its second-quarter 2025 average AUM forecast by 0.4% compared to previous estimates.

The firm also increased its long-term net flows forecast to $85 billion in the second quarter of 2025, representing an annualized growth rate of 3.2%, up from its prior forecast of $48 billion and 1.8% annualized growth.

Morgan Stanley’s earnings per share estimate for the second quarter of 2025 increased by 5 cents to $11.03, while its full-year estimates for 2025 and 2026 rose by 12 cents and 1 cent, respectively.

In other recent news, BlackRock, Inc. announced a definitive agreement to acquire ElmTree Funds, a real estate investment firm with $7.3 billion in assets under management. The acquisition, primarily paid in stock, is expected to close in the third quarter of 2025, subject to regulatory approvals. In another development, Jio BlackRock Asset Management raised over $2.1 billion in its first fund offering, marking a significant milestone for the joint venture between Jio Financial Services and BlackRock. Meanwhile, Moody’s Ratings affirmed BlackRock’s Aa3 ratings, changing the outlook to stable, following the completion of its acquisition of HPS Investment Partners. This acquisition positions BlackRock among the top five private credit franchises globally, managing approximately $190 billion in private debt. Additionally, a survey indicated that more than 20% of BlackRock’s clients plan to reduce their exposure to U.S. markets, with some showing interest in Asian equities. BlackRock also warned that growing U.S. government debt could weaken the appeal of long-dated Treasuries and the dollar, suggesting diversification beyond U.S. borders. These developments reflect BlackRock’s strategic moves and the evolving landscape of global investment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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