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BlackRock financial services logo outside of office in San Francisco

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Wells Fargo analyst Finian O’Shea started coverage of traditional asset managers with Overweight ratings on BlackRock (NYSE:BLK) and Invesco (NYSE:IVZ), given their diversification of operations and fund flow strength.

“With current obscured visibility on market direction, we prefer the reliability of proven, durable operations over stock calls focused on assumed market rallies and/or major flow improvement by currently flow-challenged players,” O’ Shea wrote in a note to clients.

T. Rowe Price (NASDAQ:TROW) is rated Equal Weight, and Franklin Resources (NYSE:BEN) and Janus Henderson Group (NYSE:JHG) get Underweight ratings.

All of the stocks lagged the S&P 500 during the past year as seen in this chart.

The firm views BlackRock (BLK) as “the clear positive stand-out for above-average and low-volatility, highly reliable organic growth,” while “Invesco’s (IVZ) flow were most improved in 2021 and relatively durable during 9M22 market turbulence.”

The SA Quant system ranks all five of the stocks as Hold, while the average Wall Street ratings is Sell for T. Rowe Price (TROW) and Franklin Resources (BEN).

Taking a contrarian view, SA contributor Cory Cramer explains why he has recently taken profit in BlackRock (BLK).


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