UPDATE: Citigroup Upgrades BlackRock to Buy on Valuation Opportunity

Citigroup raised its rating on BlackRock (NYSE: BLK) from Neutral to Buy and increased its price target from $190 to $220. Citigroup said, "The shares are up just 5% YTD versus a 16% rise for the S&P 500 and 23% median increase for Traditional Managers. If markets ease, the shares should prove defensive, particularly given the 3%+ dividend yield. Conversely, Citi Research's Domestic Strategist sees ~13% upside in the S&P 500 by YE13, and we suspect investors may seek out laggards, particularly a high quality franchise such as BLK that derives a majority of earnings from equities and offers a strong global platform and dominant ETF footprint."BlackRock closed at $187.39 on Friday.