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.
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