UBS Upgrades BlackRock Ahead of Q2 Earnings Report
UBS has upgraded BlackRock (BLK) to Buy ahead of its Q2 earnings report on July 15, citing an attractive valuation and a rare combination of growth and defensiveness. The bank expects strong ETF demand to continue driving revenue growth.
UBS has upgraded its rating on BlackRock Inc (NYSE:BLK) ahead of the company's second-quarter earnings report due on July 15, telling clients the stock offers an attractive entry point.
Rating Change
UBS raised its rating on BlackRock from Neutral to Buy, with a new price target of $1,050, implying an upside of approximately 15% from current trading levels.
Analyst Rationale
The analysts at UBS believe BlackRock's valuation is compelling relative to peers, combining growth potential with defensive characteristics. They expect continued strong demand for exchange-traded funds (ETFs), particularly BlackRock's iShares lineup, to support revenue growth.
Context
The upgrade comes just days before BlackRock's Q2 earnings release, which analysts expect to show robust asset management performance. The stock has gained about 12% year-to-date, outperforming the S&P 500.
What to Make of This
While the outlook is positive, investors should monitor global market trends and interest rate movements, as these factors influence fund flows into ETFs and BlackRock's overall performance.
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