Word on the Street
Wall Street analysts expect subdued returns for asset managers (VFH) in 1Q18 amid declining equities, weakness in tech stocks, rising interest rates, and trade war fears. The broader markets have fallen 2.2% over the past three months, reflecting a fall across sectors amid rate hikes and other major policy decisions.
Asset managers are expected to see inflows toward debt offerings and alternatives amid uncertainty about the performances of equities.
BlackRock (BLK) has 12 “buy” or “strong buy” ratings out of 15 in April 2018, reflecting a strong growth outlook. Three analysts have given the company “hold” ratings.
Analysts have given BlackRock a consensus price target of $616.7 on a next-12-month basis. This estimate reflects an implied upside of 18.8% compared to its YTD (year-to-date) return of 2.0% in 2018 so far. The stock has seen a fall from its highs mainly due to weakness across its equity holdings.
Among BlackRock’s peers, seven out of 20 analysts have given State Street Advisors (STT) “buy” or “strong buy” ratings in April 2018. The remaining 13 have recommended “holds.” The stock has a price target of $118.3 compared to its current price of $97.2.
Among banks, Bank of New York Mellon (BK) has received six “buys” as of April 2018. Twelve analysts have given the stock “holds,” and two have given it “underperform” ratings.
Four out of 16 analysts have given T. Rowe Price Group (TROW) stock “buy” or “strong buy” ratings, whereas nine have given it “hold” ratings, and three have given it “underperform” ratings.