BlackRock is one of the world’s largest investment companies based upon its assets under management. Overall, I think this company has strong prospects heading into 2011; as the global economy continues to improve, so does the value of BlackRock’s assets. The increasing popularity of ETFs have benefited BlackRock tremendously by giving it a large international distribution network along with increased product reach.
BLK sells at a premium compared to its peers, however, I still think it’s a strong investment going forward. Analysts agree as well, with many rating BLK as a solid “Buy”. Credit Suisse expects BLK to trade at nearly 20 times 2011 earnings within the next 12 months. If true, this bodes well for the stock, as we shall see a significant rise in its price. With solid analyst coverage, good future prospects, and upbeat global markets, I see BlackRock rising more than $45 a share in 2011, all the way up to $240 a total yield of 23%. Add onto that a yield of 2.8% and you have a solid, safe investment pick to build your portfolio around.