Deutsche Bank Maintains Buy On Blackrock Shares, $372 PT


In a research report issued today, Deutsche Bank analyst Brian Bedell maintained a Buy rating on Blackrock Inc. (NYSE:BLK) with a price target of $372.

Bedell observed, “BLK’s 3Q14 adjusted EPS of $5.21 easily beat Consensus of $4.69 and our estimate of $4.74. However, we view core EPS at about $4.80 after excluding tax benefits that reduced the core tax rate to 26% from 29%, and the positive FX impact of re-measuring dollar balances held overseas to their respective functional currencies. Overall, the quarter was solid with a revenue beat of 2% vs. our estimate while operating expenses were in line (ex 1-time tax-related benefit), driving an op margin of 44% vs. our 43% estimate, and long-term asset organic growth rate of 2.7% vs. our 2.0% estimate. Trimming EPS estimates Upon lower than expected end-of-period AuM and likelihood of lower performance fees in 4Q than we previously expected, we are reducing our EPS estimates as follows: 4Q14 to $4.63 from $5.00, 2015 to $20.18 from $20.76, 2016 to $20.45 from $23.78 and 2017 to $20.65 from $27.12. We also acknowledge more downside risk to estimates than upside potential near-term given the S&P 500 is down 6% in October vs. our 0% assumption for 4Q.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Brian Bedell has a total average return of -4.5% and a 28.6% success rate. Bedell has a -0.9% average return when recommending BLK, and is ranked #2889 out of 3335 analysts.

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