Gabelli & Co. reiterated a buy rating on BlackRock shares following news of the index change, saying that even with the upside spike since the announcement "we continue to believe in the long-term fundamentals of the company and would recommend purchase."

The firm also noted that BlackRock generates significant cash flow, which it estimates at $2.9 billion for fiscal 2011, and that the company could look to use some of those funds to boost its dividend even further despite having announced an increase of 37.5% in its quarterly payout on Feb. 24 to $1.375 a share.

BlackRock is expected to report its first-quarter results on April 25. The average estimate of analysts polled by Thomson Reuters is for a profit of $2.75 per share on revenue of $2.24 billion in the March-ended period.

-- Written by Michael Baron in New York.

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

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