Strong Fee Growth And Citi Mandate Boost BlackRock's Outlook

Core Insights - BlackRock Inc. reported a stronger-than-expected third-quarter performance, with assets under management reaching $13.5 trillion, driven by rising performance fees and solid margin expansion [1] - The company achieved a revenue growth of 25% year-over-year to $6.51 billion, surpassing the consensus estimate of $6.22 billion [2] - Adjusted EPS increased by 1% year-over-year to $11.55, also beating the consensus of $11.26 [2] Earnings Highlights - Revenue growth of 25% year-over-year to $6.51 billion [2] - Adjusted EPS increased 1% year-over-year to $11.55 [2] Strategic Focus - CEO Larry Fink highlighted the company's increasing emphasis on blockchain and tokenization, predicting rapid growth in the cryptocurrency market as BlackRock develops proprietary tokenization technology [3] Analyst Perspective - Analyst Alexander Blostein from Goldman Sachs reiterated a buy rating with a price target of $1,312, expecting continued organic growth in base fees and margin expansion to positively influence market perception [4] - Blostein anticipates that seasonal tailwinds and a previously announced Citi mandate of $80 billion at 15-20 basis points will support momentum into the fourth quarter [4] - The market is expected to closely monitor management's commentary on further operating leverage heading into late 2025 and 2026 [4] Investment Opportunities - Investors can gain exposure to BlackRock's stock through Fidelity Disruptive Finance ETF and Spinnaker ETF Series WarCap Unconstrained Equity ETF [5] Price Action - BlackRock shares were trading higher by 1.58% to $1,173.32 [5]