BlackRock Earnings: Market Gains Make Up for Weaker Inflows as Firm Hits Record Level of AUM

While there was little in BlackRock's first-quarter earnings that would alter our long-term view of the firm, we expect to increase our $830 per-share fair value estimate slightly to account for revised near-term expectations for assets under management, revenue, and profitability since our last update. While the company's shares trade at a hefty premium relative to the other traditional asset managers (which we believe is warranted), they are trading at a nearly 10% discount to our expected fair value estimate.