JPMorgan Upgrades BlackRock to Overweight; Q2 Net Inflows Reach $868 Billion
Alina Collins
BlackRock's Q2 adjusted EPS of $13.91 and revenue of $7.08 billion both beat Wall Street estimates handily; JPMorgan responded by upgrading the stock from Neutral to Overweight with a $1,364 price target — implying roughly 25% upside — arguing the share price has fallen well behind fundamentals.
How big was the Q2 beat?
Adjusted EPS came in at $13.91 vs. the FactSet consensus of $12.69; revenue hit $7.08 billion vs. $6.73 billion expected.
Assets under management (AUM — the total pool of client money BlackRock oversees) rose from $14.842 trillion last quarter to $15.345 trillion.
Net inflows over the past 12 months reached $868 billion, driving organic base-fee growth of 10%. This means → clients aren't just staying — they're accelerating deposits.
Why is JPMorgan upgrading now?
Analyst Michael Cho lifted the rating from Neutral to Overweight and raised the price target from $1,165 to $1,364.
His core thesis: BlackRock is a "best-in-class asset manager" with a strong outlook across inflows, organic revenue, and operating leverage.
In plain terms = earning power keeps climbing, but the stock hasn't kept up — JPMorgan thinks that gap is due to close.
Why has the stock lagged fundamentals?
Shares surged nearly 7% on earnings day, yet the year-to-date gain sits at only about 2% — far behind the fundamental trajectory.
Two headwinds explain the lag: liquidity pressure on the private-credit book, and a broader rotation of investor capital out of asset-management names into AI-linked plays.
This reflects a market that currently rewards the "AI narrative" over "steady compounding" — even when the numbers are strong, capital can stay elsewhere.
Where does the rest of Wall Street stand?
Per LSEG data, 16 out of 19 analysts covering BlackRock rate it Buy or Strong Buy.
JPMorgan's upgrade aligns with the consensus — this is not a contrarian call.
This means → the debate isn't about direction — most are bullish. The real question is whether the inflow trend holds through H2, giving the stock price room to catch up with fundamentals.
Content is for reference only, not financial advice.