Morgan Stanley notes that Vanguard announced a repricing of 168 share classes across 87 funds, including 53 ETFs with assets under management of $1.2T, on February 3. While the repricing action by Vanguard is negative for the asset management industry, the firm views the Vanguard repricing actions as “manageable” for BlackRock (BLK) and sizes a hypothetical impact as under 3% to EPS, if BlackRock were to reprice. The firm, which adds that it views BlackRock’s 400 basis point share price underperformance yesterday as one that offers “an attractive entry point,” reiterates an Overweight rating and $1,275 price target on the shares.
Maximize Your Portfolio with Data Driven Insights:
- Leverage the power of TipRanks' Smart Score, a data-driven tool to help you uncover top performing stocks and make informed investment decisions.
- Monitor your stock picks and compare them to top Wall Street Analysts' recommendations with Your Smart Portfolio
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on BLK:
- BLK Shares Drop As it Weighs up Response to Vanguard’s Fees Cut
- VGT, VHT: 2 ETFs to Buy as Vanguard Cuts Fees on Funds
- BNY Mellon appoints Carolyn Weinberg as chief solutions innovation officer
- BlackRock approves 2% increase in quarterly cash dividend to $5.21 per share
- BlackRock Inc. Earnings Call Highlights Growth and Expansion