Citigroup Reiterates Buy Rating, $240 PT on BlackRock
In a report published Friday, Citigroup reiterated its Buy rating and $240.00 price target on BlackRock (NYSE: BLK).
Citigroup noted, “BLK remains among our favored A/Ms for 2013 as we see: 1) accelerating organic growth, including likely positive upturn in equities; 2) superior margins driving superior EPS leverage; and, 3) favorable FCF deployment theme – including potential dividend hike in February, further buyback, and akin to the CS ETF deal, more bolt-on deals – the latter perpetuating the favorable daisy chain of superior strategic positioning. In turn, we see modest multiple expansion, helping to drive the stock toward $250 p.s., and still attractive upside. Maintain BLK/EV pair trade as we see favorable P/E multiple arbitrage playing out.”
BlackRock closed on Thursday at $218.75.
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