BlackRock's (BLK) management fees growth is reinforced by its "strong" Q4 financial results, UBS analysts said in a note to clients Monday.

The analysts said BlackRock is "well aligned" with the most innovative areas of asset management and long-term industry trends. While the asset management firm is not immune to private credit pressures, its large, diversified model remains resilient and somewhat agnostic to shifting asset flows, UBS' analysts said.

In addition, BlackRock's earnings algorithm is "compelling," the UBS analysts said, with organic management fee growth, market tailwinds, operating leverage, and buybacks supporting consistent with low-to-midteens earnings per share growth, making it "well positioned for structural shifts over the next decade."

UBS upgraded the stock's rating to buy from neutral, but retained a $1,280 price target.

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