Keefe Bruyette & Woods analyst Robert Lee downgraded to "market perform"from "outperform" after the company released its second-quarter results.

Lee said BlackRock's second-quarter results were below his expectations.He also said the company's long-term net inflows were weaker than expected, althoughhe expects flows to improve.

The analyst said BlackRock's stock valuation already reflectsits potential to grow organically and its ability to generate operating leverage.

Lee changed his price target to $383 from $390. He lowered hisnet EPS estimates to $19.00 from $19.23 for 2016 and to $21.90 from $22.20 for 2017.His 2018 net EPS estimate is $24.60.