Blackrock – Update:
Blackrock is a US based asset manager. Its key products and services are centred on fixed income vehicles (bonds and money market instruments and derived products of the latter), alternative investment products (such as hedge funds and similar), as well as fully fledged asset strategies. The business opportunity for BLK is important, especially in the field of could asset management and outside its domestic market.
BLK derives about 45 % of its revenues from equity activities; the equity sector has historically offered better return opportunities than the other ones. While similar returns can be expected in the near-term, raising interest rates may shift this ratio a lower level later on.
The long-term outlook for the company is excellent as an ever higher number of individuals benefit from raising levels of accumulated capital (savings and capital gains accumulated through pension plans, housing market, etc). This phenomenon is now not only observed in the traditional markets of the company, but also in Asia and Latin America, where BLK is most absent. We estimate the upside potential of stock to around 18 % to 20 %.