Deutsche Bank Now Prefers BlackRock over T. Rowe Price (BLK, TROW)

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Analysts at Deutsche Bank on Monday swapped ratings on investment managers BlackRock, Inc.( BLK ) and T. Rowe Price Group, Inc.( TROW ) .

The firm upgraded BLK from "Hold" to "Buy," while downgraded TROW from "Buy" to "Hold." Deutsche Bank has a $195 price target set on BLK (12% upside) and $55 on TROW (7% upside).

A Deutsche analyst commented, "While both TROW and BLK continue to be premiere asset mgmt franchises, given respective valuations (18x vs. 14x), expected trends ahead (increasing flows and more potential for operating leverage at BLK versus more muted flows and limited operating leverage at TROW), and YTD performance (TROW has outperformed BLK by ~2000 bps), we see limited upside in TROW and more potential upside in BLK."

BlackRock and T. Rowe Price shares were mostly flat in premarket trading Monday.

The Bottom Line
Shares of BLK have a 2.29% dividend yield, based on Friday's closing stock price of $174.50.
Shares of TROW have a 2.09% dividend yield, based on Friday's closing stock price of $51.62.

BlackRock, Inc.( BLK ) and T. Rowe Price Group, Inc.( TROW ) are both rated "Neutral," holding a Dividend.com DARS™ Ratings of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: BLK , TROW

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