Wachovia Downgrades BlackRock (BLK) to Market Perform

Wachovia downgrades BlackRock (NYSE: BLK) from Outperform to Market Perform with a $215-$220 valuation range.

The firm said, "The revision is reflective of a weak start for equity performance, tougher comps. in
performance and non-operating income, and lower realization rates. BLK should still have robust liquidity flows this quarter and relatively better equity flows."

Wachovia lowered its FY08 and FY09 EPS estimates on BlackRock from $9.71 to $9.03 and from $10.87 to $10.68, respectively. The Street estimates are $9.23 for FY08 and $10.80 for FY09.

The firm notes that BlackRock has "been a big benefactor of the credit crisis..." Trading at 24x its new FY08 EPS estimate, the Company is being valued at a 47% premium versus its peer group. Since 2001, BlackRock has traded, on average, at a premium of only 19% to its peer group.

BlackRock, Inc. is a publicly owned investment manager. [BCS]

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