tl;dr
J.P. Morgan downgraded BlackRock (NYSE:BLK) to Neutral from Overweight after the asset manager's stock surged 25% so far in Q4 due to expectations that the company will be a major beneficiary of a transition to fixed-income products and ETFs from other asset classes. Analyst Kenneth Worthington ex...
J.P. Morgan downgraded BlackRock (NYSE:BLK) to Neutral from Overweight after the asset manager's stock surged 25% so far in Q4 due to expectations that the company will be a major beneficiary of a transition to fixed-income products and ETFs from other asset classes.
Analyst Kenneth Worthington expressed skepticism about the magnitude of transition to fixed income justifying further share price outperformance. He also sees a more challenged outlook for its iShare U.S. Equity ETF, as the franchise loses market share to passive and active ETF managers, and increasingly influenced by more cyclical trends in iShares equity net sales and market returns. Worthington still considers BlackRock to be "best in class" compared with other traditional asset managers, but with caution due to slowing organic growth, ongoing market share losses in the equity ETF business, and heightened expectations for fixed income flows. BlackRock stock slipped 0.9% in Friday premarket trading, with J.P. Morgan's Neutral rating aligning with Hold and diverging from the average Wall Street rating of Buy.
The average SA Analyst rating also stands at Buy but it is noteworthy that J.P. Morgan's downgrade was not supported by Average SA Analyst and Average Wall Street ratings.
More about BlackRock Inc
BlackRock Inc. is a multinational investment management corporation based in New York City, with a market capitalization of $115.06 billion. The stock has a 52-week low of $19.88 and a high of $117.36, currently trading at $33.22. The company has a debt-to-equity ratio of 0.307 and a total cash of $17.56 billion. Market sentiment appears to be cautiously optimistic, with a price-to-earnings ratio of 775.46 and a return on equity of 0.152. However, it's important to note that past performance does not guarantee future results, and there may be potential risks and uncertainties associated with investing in this stock.
Disclaimer:
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