BlackRock Gains 4% On 3Q Profit Beat; Street Says Buy

Shares of BlackRock are up about 3.8% in Tuesday’s pre-market session, after the investment management company’s 3Q adjusted earnings of $9.22 per share surpassed analysts’ expectations of $7.77 per share. Adjusted earnings also grew 29% year-over-year, reflecting higher non-operating income and a lower share count.

BlackRock’s (BLK) 3Q revenues rose 18% year-over-year to $4.37 billion, driven by performance fees and organic growth. Its revenues also came in ahead of the Street consensus of $3.94 billion. The company generated total new inflows of $129 billion in the quarter, led by continued growth in fixed income and cash management.

BlackRock’s CEO Laurence D. Fink said “Each of our strategic investment areas, including iShares ETFs, alternatives and technology, continue to grow, while strong investment performance has driven positive active flows over the last year.” (See BLK stock analysis on TipRanks)

On Oct. 7, Wells Fargo analyst Christopher Harris maintained a Buy rating and a price target of $655 (6.5% upside potential) on the stock and said that he believes the company still has room for growth.

Currently, the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 8 Buys and 1 Hold. The average price target of $655.22 implies upside potential of about 6.6% to current levels. Shares have gained by 22.3% year-to-date.

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