BlackRock downgraded to Neutral from Overweight at JPMorgan

JPMorgan downgraded BlackRock to Neutral from Overweight with an unchanged price target of $708. The shares have outperformed meaningfully in Q4 as expectations build for BlackRock to be the leading beneficiary of a transition to fixed income products and exchange traded funds from other asset classes, the analyst tells investors in a research note. The firm agrees with the thesis that a falling rate environment makes fixed income more attractive, but it does not expect the magnitude of the transition will be enough to justify further BlackRock share price outperformance. In addition, it sees a more challenged iShares US Equity ETF outlook with iShares losing market share to passive and active ETF managers.