This Day On The Street
Continue to site
ADVERTISEMENT
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

BlackRock Gets Citigroup Upgrade

NEW YORK ( TheStreet)-- BlackRock (BLK - Get Report)can continue to grow despite $3.6 trillion in assets under management, and other fears around the stock are overblown, Citigroup analysts argued in upgrading the shares to buy from neutral Monday.

Citigroup analyst William Katz raised his price target by $30 to $220--14.5 times his 2013 earnings estimates, which he also moved higher in Monday's report. BlackRock shares closed Friday at $187.39.

BlackRock shares have been held back by fears the money manager's exchange traded fund revenues will suffer from a price war with Vanguard, CEO Larry Fink could become President Obama's next Treasury Secretary, or the company may be designated a systemically important financial institution (SIFI) and subjected to tighter regulation, according to the report.

Katz argues these fears are overblown. He believes a move by Vanguard to use a cheaper benchmark from University of Chicago for its indices, rather than MSCI, will result in many institutional money managers sticking with BlackRock ETFs. He sees 3% growth for BlackRock's ETF business in 2013, consistent with industry trends. Katz also believes CEO Fink has tried to allay concerns he wants to be the next Treasury Secretary, but adds that the company is mature enough at this point that it can continue to grow without Fink if need be. Finally, he believes regulators do not have a strong case to designate BlackRock a SIFI, despite widespread concerns over the money market industry.

-- Written by Dan Freed in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
BLK $368.64 0.00%
AAPL $128.95 0.00%
FB $78.99 0.00%
GOOG $537.90 0.00%
TSLA $226.03 0.00%

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs