NEW YORK (TheStreet) -- Shares of BlackRock Inc (BLK) are climbing, up 0.41% to $342.50, in pre-market trading Monday, after the asset management company had its rating raised to "buy" from "neutral" by analysts at Citigroup this morning.
Citigroup analysts said attrition at PIMCO provides a unique opportunity for BlackRock, and raised its price target for shares to $385 from $335.
Citigroup also pointed to several factors including the investment management firm's shifts in its asset management mix for the upgrade.
The firm believes those shifts should keep the company's volume growing.
New York City-based BlackRock provides a range of investment and risks management services with clients including retail, high net worth, and institutional investors.
Separately, TheStreet Ratings team rates BLACKROCK INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate BLACKROCK INC (BLK) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, increase in stock price during the past year, impressive record of earnings per share growth and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 5.1%. Since the same quarter one year prior, revenues rose by 15.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 42.37% is the gross profit margin for BLACKROCK INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 32.18% significantly outperformed against the industry average.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- BLACKROCK INC has improved earnings per share by 27.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BLACKROCK INC increased its bottom line by earning $16.88 versus $13.80 in the prior year. This year, the market expects an improvement in earnings ($19.20 versus $16.88).
- The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Capital Markets industry average. The net income increased by 25.6% when compared to the same quarter one year prior, rising from $730.00 million to $917.00 million.
- You can view the full analysis from the report here: BLK Ratings Report