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BlackRock (BLK) Following Q2 Analyst Calls Is The Undervalued Story Still Intact

Simply Wall St · 1d ago

Analyst reactions put BlackRock stock back under the spotlight

BlackRock (BLK) is drawing fresh attention after its Q2 earnings report prompted a wave of analyst commentary focused on management fees, operating leverage, and trends in average assets under management.

After the Q2 release, BlackRock shares have eased in the very short term, with the 7 day share price return down 3.62% and the 30 day share price return down 1.24%. However, the 90 day share price return of 12.82% and the 3 year total shareholder return of 72.85% point to momentum that has been building over a longer window as investors respond to earnings, fee trends and evolving views on valuation.

Compare the setup in BlackRock with a curated group of other potential value ideas using our 47 high quality undervalued stocks that share a similar focus on fees, scale and operating leverage.

Bulls see BlackRock priced below fair value estimates after Q2, while bears focus on fee pressure and limits to operating leverage. Which side does the current valuation support as you evaluate the next move for BLK?

Most Popular Narrative: 14.9% Undervalued

The most followed narrative on Simply Wall St places BlackRock's fair value at $1,318.96, which sits meaningfully above the recent $1,122.29 close. That gap has investors weighing how much to trust the long term cash flow story against the current Q2 debate on fees and operating leverage.

BlackRock has entered a new phase of structural growth and earnings quality improvement following the successful execution of its FY 2025 strategic plan. The company is transitioning from a predominantly market beta asset manager into a scaled global financial infrastructure platform, driven by technology (Aladdin + Preqin), private markets, and ETFs.

Read the complete narrative.

The fair value call here rests on more than headline AUM. It leans on a specific revenue growth path, firm margin assumptions and a richer earnings multiple tied to technology and private markets. Curious which pieces of BlackRock's model carry the most weight in that equation and how the forecast mix compares with the current business profile.

Result: Fair Value of $1,318.96 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this BlackRock narrative could be tested if fee pressure weakens margins or if acquisitions and technology investments fail to deliver the expected earnings mix shift.

Find out about the key risks to this BlackRock narrative.

Next Steps

With mixed sentiment around BlackRock's valuation, margins and fee outlook, it helps to review the latest numbers yourself and decide how compelling the risk reward trade-off looks right now. To see both the key concerns and the potential upsides in one place, start with the 3 key rewards and 2 important warning signs.

Looking for more investment ideas beyond BlackRock?

If BlackRock has sharpened your interest in fees, balance sheets and long term potential, do not stop here. Broaden your watchlist now and avoid missing fresh opportunities.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.