that BlackRock [profile]
shares, which have been hovering in the mid $180s, may be undervalued.
The publication cites analysts who say the company stock may go past $210 in the next 12-months.
BlackRock shares have stagnated recently for a number of reasons, including ongoing price wars with competitors Vanguard [profile]
and Charles Schwab [profile]
Like other asset managers, BlackRock also took a hit from the Financial Crisis. In 2008, earnings fell 22 percent from the prior year, to $5.91 a share.
Moreover, chief executive Larry Fink
is also rumored as the next US Treasury
secretary in case President Barack Obama gets to serve his second
term. When asked about this, Fink said "I have a great perch, and a
really great job."
BlackRock generated nearly $2.6 billion in free cash last year, and
the company is using the funds, in part, to buy back shares. It
repurchased $1.3 billion of stock in the first half of this year.
To read more about Barron's
analysis of BlackRock, check out the article on the publication's website.
Stay ahead of the news ... Sign up for our email alerts now