BofA Sees Stronger Fee Outlook Supporting BlackRock, Inc. (BLK)’s Longer-Term Earnings Path

BlackRock, Inc. (NYSE:BLK) is included among Dividend Contenders List: Top 20 Stocks.

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On January 16, BofA raised its price target on BlackRock, Inc. (NYSE:BLK) to $1,467 from $1,431 and maintained a Buy rating on the stock. After reviewing the company’s quarterly results, the firm also increased its EPS estimates for 2025, 2026, 2027, and 2028. BofA said the higher outlook mainly reflects stronger management and performance fee expectations, though it also noted some pressure from a lower operating margin.

BlackRock’s fourth-quarter profit came in above Wall Street estimates on January 15, helped by the broader market rally. Higher asset prices lifted fee revenue and pushed the firm’s assets under management to a record $14 trillion. US stocks rallied last year as enthusiasm around AI picked up, interest rates eased, and economic conditions stayed relatively steady. That backdrop encouraged investors to shift money back into lower-cost index strategies. At the same time, cooling inflation and a softer job market led the Federal Reserve to take a more dovish tone, which supported strong inflows into BlackRock’s fixed-income products.

During the quarter, equity product inflows totaled $126.05 billion, slightly lower than a year earlier. Fixed-income products brought in $83.77 billion. Long-term net inflows reached about $267.8 billion, driven largely by continued momentum in the firm’s ETF business, which remains its key engine of organic growth. BlackRock also posted a record $698.3 billion in net inflows for the full year.

Performance fees climbed 67% to $754 million in the quarter, reflecting stronger results in private markets.

BlackRock, Inc. (NYSE:BLK) is a global investment management firm that provides investment and technology services to both institutional and retail clients.

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