Keefe, Bruyette & Woods analyst Aidan Hall raised the price forecast on BlackRock, Inc. (NYSE:BLK) to $1,180 from $1,160 while maintaining an Outperform rating.

On Wednesday, the investment giant reported fourth-quarter results, with revenue of $5.68 billion, beating the consensus of $5.53 billion and adjusted EPS of $11.93, surpassing the consensus of $11.21.

The analyst writes that BLK shares responded favorably to the results, surpassing both peers and the broader market by more than 300 basis points.

BlackRock is still in the early phases of its transformation, with management’s commentary remaining constructive on growth initiatives for 2025, adds the analyst.

Notably, Hall writes that management highlighted ongoing initiatives to meet the growing demand for alternative investments in the retail channel.

These include a managed model partnership with Partners Group, offering a single-subscription document with three risk profiles and a mix of BlackRock and Partners Group funds, adds the analyst.

Also, the analyst writes that management expects core G&A growth in the mid-to-high single digits for 2025, including expenses related to GIP and Preqin.

Hall now anticipates $152.5 million in G&A expenses from GIP and Preqin and expects core G&A to grow 7.9% in 2025, excluding HPS, which the analyst model to close by June 30.

Management also expects continued operating margin expansion, driven by a more variable expense base, with the analyst projecting an estimated 80bps margin improvement to 45.3% in 2025.

Consequently, the analyst slightly adjusted EPS estimates to $10.94 (from $10.92) for first-quarter FY25, $47.23 (from $46.94) for 2025 and $53.62 (from $53.89) for 2026.

The revisions reflect higher operating expenses, primarily from compensation and benefits, as well as amortization of intangibles, partially offset by higher total revenue, says the analyst.

Investors can gain exposure to the stock via Fidelity Disruptive Finance ETF (NASDAQ:FDFF) and Spinnaker ETF Series Genter Capital International Dividend ETF (NYSE:GENW).

Price Action: BLK shares are down 2.44% at $988.42 at the last check Thursday.

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