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Morgan Stanley analysts told investors in a note Monday that BlackRock (NYSE:BLK) is poised to capture fixed income rotation.
“BLK uniquely positioned to capture growth opportunities in fixed income, cash mgmt, private markets, and Aladdin technology,” stated the analysts, who have an Overweight rating and $861 price target on BLK shares.
They believe the investment management company’s “breadth of capabilities, unrivaled distribution prowess, and top brand” uniquely position the firm to capture key growth zones over the next several years, resulting in the firm’s $9 trillion of AUM today “expanding to $10 trillion in the next few quarters, and surpassing $15 trillion in 5-years.”
“The firm’s track record of success with 5% average organic growth over the past 5 years, delivering $1.8 trillion of organic new assets, reinforces our confidence as we look out over the next 5-years in the context of a highly fragmented $100+ trillion industry,” the analysts added.
“BLK’s scale, diversification, disciplined investments made across market cycles, and efficient operations with focus on expenses should support continued organic growth and margin expansion. We also see opportunities for inorganic growth to drive upside, that could capitalize on dislocation and accelerate BLK’s growth, similar to how they’ve executed in the past.”
