Trump Administration’s Reforms to Benefit BlackRock and Industry
The US Senate recently passed the Tax Cuts and Jobs Act, which gives a tax break to corporates from 35.0% to 21.0%. BlackRock (BLK) had an adjusted tax rate of 31.3% in 4Q17, implying a 10.0% rise in earnings per share on the implementation of the bill. State Street Advisors (STT), T. Rowe Price (TROW), and Wells Fargo (WFC), which have domestic exposure, tend to benefit more than their peers.