Merrill Not Dumping Blackrock (BLK), Goldman Thrilled

Goldman Sachs reiterates a Buy on Blackrock following solid Q2 earnings this morning. Estimates and target price are under review. Goldman lauded Blackrock for the “diversification of its platform” and its “robust” business pipeline:

This quarter’s results once again highlight the breadth and diversification of BlackRock’s platform. Although cash management outflows were a slight negative, $20 billion plus of higher fee paying long-dated flows more than offset liquidity outflows. Moreover, the company’s business pipeline remains robust at $64 billion of wins ($23 bn in long-dated, $8.5 bn in cash management and $32.5 bn in advisory). In addition, continued strength in the BlackRock Solutions business underscores the firm’s risk-management expertise, which should result in further advisory mandate wins.

Goldman also said that it was pleased that Merrill Lynch has announced that, rather than selling its stake in Blackrock, it will “extend and strengthen” its relationship.

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