This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Sector Snap: Asset Managers Rise On Upbeat Reports

DES MOINES, Iowa (AP) ¿ Shares of asset managers rose Thursday, led by T. Rowe Price Group Inc., as analysts predicted that investors will dive further into stocks, pushing fee income higher and improving profitability for companies in the industry.

Goldman Sachs analyst Marc Irizarry raised his rating on the sector to "Attractive" from "Neutral." On average, he expects shares of companies of asset managers that carry Goldman's "Buy" investment rating will rise 30 percent. The firm has "Buy" ratings on KKR Financial Holdings, Artio Global Investors Inc., The Blackstone Group, Franklin Resources, Och-Ziff Capital Management Group and BlackRock Inc.

Earnings estimates are likely to rise as the environment for the asset managers improves in 2010, Irizarry said. As investors return to equities and other riskier investments, asset managers will see fee income rise, which will improve operating margins, Irizarry wrote in a note to investors. He expects the group's average assets under management are expected to grow 13 percent next year.

Equity flows in 2010 are likely to favor international funds, passive strategies and managers with stronger performance track records, Irizarry said.

Och-Ziff Capital shares climbed 24 cents, or 2 percent, to $12.50; KKR shares rose 1 cent to $5.41; Artio Global shares rose 35 cents to $23.88; and Blackrock Inc. gained $1 to $228.

Positive comments on the sector also came Thursday from Jefferies & Co. analyst Daniel T. Fannon who upgraded T. Rowe Price to "Buy" from "Hold" and increased his price target on the shares to $60 from $54.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,999.34 -31.80 -0.19%
S&P 500 1,984.13 -1.41 -0.07%
NASDAQ 4,518.9020 -48.6960 -1.07%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs