Analyst Note
| Greggory Warren, CFA |We expect to increase our fair value estimate for wide-moat rated BlackRock to $960 per share following the company's release of fourth-quarter earnings that were at the upper end of our expectations as well as to adjust for our changing expectations for the U.S. corporate tax rate (which we had been projecting to increase to around 26% as part of the Build Back Better legislation). BlackRock closed out the December quarter with a record $10.010 trillion in managed assets, up 5.8% sequentially and 15.4% on a year-over-year basis. Annualized organic AUM growth of 7.7% during the fourth quarter, and full-year organic growth of 5.7%, was above our long-term annual target range of 3%-5% (and management's own guidance of 5%) as BlackRock generated solid flows from both its active fund and ETF operations.