Nomura Securities In Depth Q2 Review on BlackRock (BLK); Respected on The Street
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Price: $1,173.73 -0.77%
Rating Summary:
20 Buy, 6 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
20 Buy, 6 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on BlackRock (NYSE: BLK) price target of $195.00 (from $201.00)
Analyst, Glenn Schorr, said, "Respectable quarter given the backdrop, but not great as LT AUM was down 3% q/q with the markets (MSCI EAFE -8% q/q, and S&P -3% q/q) and net inflows were $3.7bn, or ~0.5% organic growth (not great, but likely better than average). Still, despite the backdrop, operating margins rose 60bp to a strong 39.2% and BLK continues to generate a lot of cash and continues to return it to shareholders with its 3.4% yield and 63% total payout so far this year (ex the Barclay’s secondary). Overall, we think BLK is controlling what it can in a tough tape, though no doubt investors would prefer a little better flows and revenue trends (unfortunately, BLK is too big and diversified to fight that tape for now). We continue to like the stock as BLK does what it can in tough markets (manage expenses and return capital) and think patient investors will be rewarded as markets improve. We revised our estimates a little and lowered our target price to $195 on the heels of the recent market moves."
FY12 EPS estimate cut from $13.82 to $13.04 and FY13 from $15.43 to $15.00.
For an analyst ratings summary and ratings history on BlackRock click here. For more ratings news on BlackRock click here.
Shares of BlackRock closed at $175.05 yesterday.
Analyst, Glenn Schorr, said, "Respectable quarter given the backdrop, but not great as LT AUM was down 3% q/q with the markets (MSCI EAFE -8% q/q, and S&P -3% q/q) and net inflows were $3.7bn, or ~0.5% organic growth (not great, but likely better than average). Still, despite the backdrop, operating margins rose 60bp to a strong 39.2% and BLK continues to generate a lot of cash and continues to return it to shareholders with its 3.4% yield and 63% total payout so far this year (ex the Barclay’s secondary). Overall, we think BLK is controlling what it can in a tough tape, though no doubt investors would prefer a little better flows and revenue trends (unfortunately, BLK is too big and diversified to fight that tape for now). We continue to like the stock as BLK does what it can in tough markets (manage expenses and return capital) and think patient investors will be rewarded as markets improve. We revised our estimates a little and lowered our target price to $195 on the heels of the recent market moves."
FY12 EPS estimate cut from $13.82 to $13.04 and FY13 from $15.43 to $15.00.
For an analyst ratings summary and ratings history on BlackRock click here. For more ratings news on BlackRock click here.
Shares of BlackRock closed at $175.05 yesterday.
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