Wall Street ratings indicate upside
Asset managers (VFH) have had “buy” to “hold” ratings in recent months since equities are expected to be upbeat in the next few quarters. Analysts have increased their “strong buy” or “buy” ratings to 12 in December 2017 for BlackRock (BLK), from 11 “buy” ratings in October 2017. The company has been awarded three “hold” ratings and no “sell” or “underperform” ratings.
Analysts have given BlackRock a price target of $520.92 on a next 12-month basis, an implied upside of 3.7% against the year-to-date return of 32% in 2017. The limited upside potential reflects a lower expansion of equities, with interest rate hikes pushing for lower bond returns.
Leads among peers
Among other managers, State Street (STT) has seven “buys” and 13 “holds” in December 2017. Its ratings have remained stable over the past three months. The company has seen flows largely into ETF offerings and is seeing some competition in its assets under administration business.
For T. Rowe Price Group (TROW), four analysts have recommended a “buy” or “strong buy,” while three analysts have issued an “underperform” rating. Nine analysts have rated it a “hold.” Analysts are predicting negative returns on stock prices over the next 12 months.
For the Bank of New York Mellon (BK), six of the 20 analysts have called for a “buy” or “strong buy,” while 12 have given it a “hold” rating. The remaining analysts have given it an “underperform” rating.