Wells Fargo cuts BlackRock, Inc. target price to $1170 from $1180

Wells Fargo cuts BlackRock, Inc. target price to $1170 from $1180

Wells Fargo has revised its target price for BlackRock, Inc. stock, reducing it from $1180 to $1170. This decision comes after the recent earnings reports from both companies, which have provided insights into their financial performance and strategic directions.

Wells Fargo's latest earnings report, released on July 15, 2025, highlighted a mixed performance. The bank reported better-than-expected second-quarter results, with total revenue increasing 0.6% year over year to $20.8 billion, and adjusted earnings per share of $1.54 per share, exceeding Wall Street's consensus estimate [1]. However, the stock was under pressure after management reduced guidance on a key banking metric, particularly net interest income (NII). The bank cited the impact of lower interest rates and deposit mix changes as reasons for the decline in NII [1].

BlackRock, on the other hand, reported strong earnings for the second quarter of 2025. The firm crossed $12.53 trillion in assets, an 18% jump from the same time last year, driven by $68 billion in net client inflows and the lift in U.S. equities to record highs [2]. BlackRock's private credit play also boosted profits, with the firm closing its acquisition of HPS Investment Partners, a major player in private credit, on July 1, 2025 [2].

Wells Fargo's decision to cut BlackRock's target price reflects the bank's assessment of the potential impact of BlackRock's strategic shifts on its financial performance. While BlackRock's push into private markets is expected to generate high-fee revenue, it may also result in increased competition for Wells Fargo in certain areas [2].

The reduction in the target price is not necessarily a reflection of a negative outlook on BlackRock's future prospects. Instead, it is a strategic adjustment based on the current financial landscape and the bank's own priorities. Wells Fargo remains committed to its long-term strategy of maximizing returns and becoming more efficient [1].

References:

[1] https://www.cnbc.com/2025/07/15/were-upgrading-wells-fargo-stock-despite-its-earnings-driven-decline.html

[2] https://www.cryptopolitan.com/blackrock-jpmorgan-wells-fargo-citi-earnings/