Craig Siegenthaler, an analyst from Bank of America Securities, reiterated the Buy rating on BlackRock. The associated price target was raised to $1,456.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Craig Siegenthaler has given his Buy rating due to a combination of factors that highlight BlackRock’s strategic positioning and growth potential. One of the key reasons is BlackRock’s exploration into tokenizing its funds and ETFs, which could open up a new channel to attract younger investors who prefer the flexibility of self-custody in digital wallets. This move is particularly promising given the significant market opportunity, with over $4.5 trillion currently held in digital wallets globally.
Additionally, Siegenthaler notes that while the immediate revenue impact may be limited, BlackRock’s proactive approach positions it well to capitalize on the growing digital asset ecosystem as regulatory clarity improves and adoption increases. Furthermore, BlackRock’s strong market presence in secular growth businesses such as ETFs, fixed income, and technology, combined with expected organic growth in management fees and performance fees, supports a forecast of mid double-digit EPS growth. This underpins the price objective of $1,456, implying a 24% total return potential, reinforcing the Buy rating.
Based on the recent corporate insider activity of 116 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BLK in relation to earlier this year.