Goldman Sachs Adds BlackRock (BLK) To Conviction Buy List

Goldman Sachs Group analysts Richard Ramsden, Brian Foran, Daniel Harris and Jessica Binder Graham added shares of BlackRock Inc BLK to their Conviction Buy List, with a price target of $200 per share. The analysts said that they believed that any concerns over potential growth for BlackRock Inc are now priced into the stock , which is trading in line with its peers. The Goldman Sachs Group analysts wrote, "however, investors still underestimate the potential for BLK’s multiple gap to revert to its historical norm as organic growth re-accelerates and outstrips peers into 2H2010 driven by its institutional exposure (88% of AuM) and mix of alpha-oriented alternatives, beta products (ETFs), and multi-asset strategies. We look for quarterly earnings reports and flow datapoints as catalyst to affirm our stance. Our 12-month P/E based price target is $200; key risks include market performance and lower than expected organic growth."