Fresh off its strong second-quarter results, BlackRock Inc. (BLK) received renewed backing from Bank of America, which reiterated its Buy rating and raised its earnings forecasts and price forecast, citing long-term growth opportunities in direct indexing, private markets and tokenization.

BlackRock Analyst Raises Price Forecast

Bank of America analyst Craig Siegenthaler reiterated a Buy rating on BlackRock and increased his price forecast to $1,320 from $1,298, implying roughly 21% upside from the stock's July 15 closing price. The analyst also raised earnings estimates for 2026 through 2028, citing higher management and performance fees.

Direct Indexing Business Gains Momentum

The firm said BlackRock's tax-managed investing platform, Aperio, generated $7 billion of net inflows during the second quarter, bringing year-to-date inflows to $20 billion, already exceeding the record $15 billion recorded in all of 2025.

Assets under management in the business have increased fourfold over the past five years, reinforcing what the analyst described as a durable secular growth opportunity.

Private Markets Continue Strong Expansion

Bank of America also highlighted BlackRock's expanding private markets franchise. The business attracted a record $15 billion of inflows during the quarter, supported by private credit deployment, infrastructure fundraising and a large private equity outsourcing mandate.

Tokenization Emerges as Long-Term Growth Driver

The report identified tokenization as another long-term catalyst. BlackRock manages approximately $60 billion of Circle reserve assets and has filed to launch two tokenized money market funds.

The analyst believes tokenized funds, exchange-traded funds and eventually private market products could create a new digital distribution channel by enabling on-chain subscriptions and redemptions through digital wallets, expanding access beyond traditional brokerage platforms.

Aladdin Positioned to Withstand AI Competition

Bank of America also said it remains unconcerned about artificial intelligence disrupting BlackRock's Aladdin technology platform, arguing its entrenched workflow and system-of-record role create significant competitive advantages.

The analyst added that proposed U.S. retirement regulations could further increase demand for Aladdin and Preqin's private markets data and analytics capabilities.

Margin Expansion and Long-Term Earnings Outlook

Looking ahead, the firm expects BlackRock's adjusted operating margin to exit 2026 near 46%, supported by continued growth in private markets and technology businesses.

It forecasts mid-double-digit earnings growth over time as the company gains market share across exchange-traded funds, fixed income, alternatives and technology solutions.

Bank of America reiterated its Buy rating on BlackRock, citing the company's strong positioning across multiple secular growth businesses and its unmatched global distribution network.

The stock carries a Buy rating with an average price forecast of $1,336.40. Recent analyst moves include:

• UBS: Buy (Raises Target to $1,320.00) (July 16)
• Evercore ISI Group: Outperform (Raises Target to $1,245.00) (July 16)
• Morgan Stanley: Overweight (Raises Target to $1,488.00) (July 16)

BlackRock Price Action

BLK Price Action: BlackRock shares were down 0.40% at $1,089.02 at the time of publication on Thursday.