11:30 AM EDT, 07/16/2025 (MT Newswires) -- BlackRock ( BLK ) posted a strong Q2 EPS, driven by gains from stakes in firms like Circle and iCapital, though operating income slightly missed due to higher expenses, Morgan Stanley said in a note Wednesday.

The company is expected to sustain over 5% organic base fee growth, following 6% growth in Q2 and 7% over the past year, with the recent HPS acquisition further supporting this trend, the investment firm said.

Analysts forecast 13% annual EPS growth between 2025 and 2027, supported by improving margins and steady fee income, according to the note.

Management remains confident in its long-term growth strategy, especially with rising exposure to private markets and global capital market expansion through deals like GIP, Preqin, and HPS, Morgan Stanley said.

The firm continues to outperform its 5%+ base fee growth target, driven by growth in infrastructure, real estate, and private credit offerings, Morgan Stanley analysts noted.

Guidance includes about $1.5 billion in share repurchases, and a 25% tax rate, while fundraising is expected to ramp up through 2030, particularly in infrastructure and private credit, according to Morgan Stanley.

Morgan Stanley maintained an overweight rating and lowered its price target to $1,224 from $1,247.

Shares of the company were up about 1.5% in recent trading.

Price: 1061.59, Change: +15.43, Percent Change: +1.47