BlackRock Inc. (BLK): Better margin trajectory and confidence in HSD organic base fee growth drive healthy EPS upside; reiterate Buy

Following 3Q26 results, we raise our 2026E-28E EPS estimates to $57.55/$65.41/$77.33 from $55.27/$63.50/$74.25, reflecting a stronger organic growth outlook and increased confidence in BLK's long-term margin expansion trajectory, which we believe should support a positive EPS revision cycle and pave the way for the stock to re-rate closer to its historical ~20x multiple. Specifically, BLK continues to deliver above-target organic base fee growth (11% in 3Q26), with management highlighting its ability to deliver organic base fee growth in the 6%-8% range, with upside potential into HSD-LDD growth, supported by 1) continued broadening of growth across the ETF platform, including strong momentum in Active, Precision, and Fixed Income ETFs; 2) significant runway for private markets growth, driven by fundraising and deployment across Infrastructure and Private Credit, growing insurance demand, and an expanding opportunity set tied to AI infrastructure buildout and financing;