The Federal Trade Commission, alongside the U.S. Department of Justice Antitrust Division, has become involved in a multistate antitrust lawsuit targeting asset managers including BlackRock (BLK, Financial). This legal action, spearheaded by Texas Attorney General Ken Paxton, claims that BlackRock, among others, participated in an anticompetitive scheme to suppress coal production. This initiative allegedly aligns with a broader "Net Zero" strategy aimed at promoting anti-coal Environmental, Social, and Governance (ESG) objectives.
The lawsuit accuses these asset managers of using their shareholder influence in rival coal companies to decrease coal output, which purportedly led to higher coal prices and increased energy costs for American consumers. The FTC and DOJ have submitted a Statement of Interest to emphasize their focus on enforcing antitrust laws to shield markets from behaviors that hurt consumers financially, while not impeding regular investment activities.
Both agencies have requested the U.S. District Court for the Eastern District of Texas to dismiss the claims of the asset managers, highlighting several legal misunderstandings regarding the application of federal antitrust laws to institutional investors. This intervention underscores the agencies' commitment to preventing anti-competitive practices that could elevate energy prices.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for BlackRock Inc (BLK, Financial) is $1,041.29 with a high estimate of $1,111.00 and a low estimate of $950.00. The average target implies an upside of 6.89% from the current price of $974.17. More detailed estimate data can be found on the BlackRock Inc (BLK) Forecast page.
Based on the consensus recommendation from 18 brokerage firms, BlackRock Inc's (BLK, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for BlackRock Inc (BLK, Financial) in one year is $931.19, suggesting a downside of 4.41% from the current price of $974.1663. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the BlackRock Inc (BLK) Summary page.
