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Harvard Management Company’s latest filing shows a clear shift inside BlackRock (BLK) linked crypto products, with a reduced position in its bitcoin ETF and a sizable new allocation to the firm’s Ethereum focused fund.
See our latest analysis for BlackRock.
BlackRock’s crypto pivot is landing at a time when its shares trade at US$1,071.51, with a 1 day share price return of 1.50% but a 30 day share price return showing a 7.88% decline, while a 1 year total shareholder return of 12.28% and 3 year total shareholder return of 60.84% point to stronger longer term momentum.
If this crypto news has caught your attention, it could be a good moment to look beyond one asset manager and scan the wider digital assets space with our 16 cryptocurrency and blockchain stocks.
With BlackRock shares sitting at US$1,071.51 and trading at roughly a 24% discount to the average analyst price target, the real question is whether this reflects mispricing or whether the market already anticipates future growth.
Compared with the narrative fair value of about $1,328, BlackRock’s last close at $1,071.51 sits well below what that framework considers reasonable.
BlackRock’s expansion into private markets through acquisitions like HPS Investment Partners, GIP, and ElmTree positions the company to capitalize on the secular shift of institutional assets into alternatives and infrastructure, driving higher-fee revenue streams and long-term earnings growth.
Read the complete narrative.
Want to see what sits behind that gap between price and fair value? The narrative leans heavily on compounding revenues, steady margins, and a premium earnings multiple. Curious how those pieces fit together over time?
Result: Fair Value of $1,328.44 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, the story could change quickly if fee compression worsens or if the push into private markets and technology brings higher costs without the expected payoff.
Find out about the key risks to this BlackRock narrative.
That 19.3% gap to the narrative fair value leans on future earnings power, but the current P/E of 29.9x tells a different story. It sits well above the estimated fair ratio of 19.8x and above the 23.1x industry and 25.3x peer averages, which points to higher valuation risk instead of a clear bargain. So which signal do you trust more: the cash flow narrative or the earnings multiple staring you in the face?
