Why BlackRock Is Bracing for Subdued Equity Performance
On March 31, 2017, BlackRock was managing a record $3.1 trillion—about 56% of the company’s total AUM—in its Institutional Clients division.
BlackRock continues to command a premium valuation among other traditional and alternative asset managers—thanks to its diversified offerings.
So far in June 2017, ten of the 14 analysts covering BlackRock (BLK) have rated the stock as a “strong buy” or “buy.” Four analysts have rated it as “hold.”
BlackRock’s (BLK) iShares offerings continue to outperform among ETFs, while ETFs keep outperforming other product offerings among new fund flows.
BlackRock has maintained operating margins in the range of 42%–46% over the past few quarters and saw YoY improvements in all four quarters of 2016.
BlackRock (BLK) has brought in record assets through its ETF offerings and is managing record funds for institutional investors.
BlackRock’s (BLK) Retail business had AUM (assets under management) of $564 billion, making up 11% of the company’s total, on March 31, 2017.
BlackRock has seen rising and sustained income levels over the past few years, mainly due to diversified and innovative product offerings like iShares.
Prospect Capital has a current dividend yield of 12.2%.
Analysts have given PSEC a one-year price target of $8.50 from the current price level, reflecting 0.7% growth.
Although Prospect Capital (PSEC) has been delivering decent returns to investors, there has not been much change in the analysts’ ratings.
About 70% of Prospect Capital’s portfolio is composed of first and second lien secured loans
In fiscal 3Q17, Prospect Capital’s total value of investments stood at $6.0 billion in 125 companies, compared to $5.9 billion in fiscal 2Q17 in 123 companies.
Prospect Capital’s (PSEC) originations decreased in fiscal 3Q17 to $449.6 million compared to $469.5 million in fiscal 2Q17.
Prospect Capital (PSEC) reported a decline in its net investment income in its fiscal 3Q17 earnings. Analysts expect PSEC’s fiscal 4Q17 EPS to reach $0.20, representing no change from fiscal 3Q17.
Berkshire Hathaway’s (BRK.B) analyst ratings have remained stable over the past quarter on subdued earnings and analyst misses.
As of May 2017, Berkshire Hathaway (BRK.B) stock has fallen 0.60% over the past month and risen 16.0% over the past year.
Berkshire Hathaway’s (BRK.B) services and retail division had a slow start in 1Q17. However, it has posted growth on a year-over-year basis.
With the Trump administration, the US manufacturing space is expected to expand on reforms, lower taxation, and a push for domestic consumption over imports.
Berkshire has seen a strong performance in recent quarters on a rebound in oil prices (USO), profitability, and utilization of utilities.