Will Analysts Assign More Upgrades after BlackRock’s 3Q17 Numbers?
For asset managers (VFH), analyst ratings have remained roughly similar—and subdued—over the past few quarters, as the expected large upside in equities has remained low. However, as the Trump administration targets major reforms through tax cuts, the Choice Act (a proposed amendment to the Dodd-Frank Act), and a push for domestic manufacturing.
Equities could bump up over the next few quarters, resulting in more flows and performance income for asset managers.
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Notably, 11 of 15 analysts covering BlackRock (BLK) have given it a “buy” rating in October 2017, while four analysts have rated it a “hold.” The “buy” recommendations have risen by 1 from September, reflecting marginal improvement in the company’s growth outlook.
The stock’s mean price target has risen to $516.31 per share, implying an 8.9% rise from its current level.
Stacking up industry
Among other managers, State Street (STT) has garnered only seven “buy” or “strong buy” recommendations of the 20 analysts covering the stock in October 2017, reflecting relatively weak upside potential. But 13 analysts have rated the stock a “hold.”
For T. Rowe Price Group (TROW), 16 analysts have recommended a “buy” or “strong buy,” while nine analysts have issued a “hold,” and four have given an “underperform” rating.
For Bank of New York Mellon (BK), only six of 20 analysts have called for “buy” or “strong buy,” while two have given it an “underperform” rating. The remaining analysts have given BK “hold” ratings.