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BlackRock Inc BLK

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Morningstar’s Analysis

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Market Gains and Solid Organic Growth Lift BlackRock's AUM to Record High; Raising FVE to $810

Greggory Warren, CFA Sector Strategist

Analyst Note

| Greggory Warren, CFA |

While there was little in wide-moat BlackRock's first-quarter earnings to alter our long-term view of the firm, we have increased our fair value estimate to $810 per share from $750 to account for the continued recovery in the markets following the steep coronavirus-induced sell-off during the first quarter of 2020. More than half of the change comes from our expectation that BlackRock will have more in AUM during 2021-25 than we were previously forecasting, with the remainder coming from a slightly better fee outlook, as well as more stability in their margins than we were previously forecasting.

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Company Profile

Business Description

BlackRock is one of the largest asset managers in the world, with $9.007 trillion in AUM at the end of March 2021. Product mix is fairly diverse, with 53% of the firm's managed assets in equity strategies, 28% in fixed income, 8% in multi-asset class, 8% in money market funds, and 3% in alternatives. Passive strategies account for around two thirds of long-term AUM, with the company's iShares ETF platform maintaining a leading market share domestically and on a global basis. Product distribution is weighted more toward institutional clients, which by our calculations account for around 80% of AUM. BlackRock is also geographically diverse, with clients in more than 100 countries and more than one third of managed assets coming from investors domiciled outside the U.S. and Canada.

Contact
55 East 52nd Street
New York, NY, 10055
T +1 212 810-5300
Sector Financial Services
Industry Asset Management
Most Recent Earnings Dec 31, 2020
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 16,700

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