BlackRock (BLK) is expected to report solid flows in Q3 on Oct. 14 amid soft markets, UBS Securities said in a Tuesday report.

"Our call, own the stock into the print, as we expect strong organic base fee growth (7% in 3Q), a fee-rate and flow beat," the report said.

The report said investors are likely focused on continued

margin expansion, however, Q3 margins are expected to be roughly flat sequentially.

The note also pointed to expectations for a seasonally strong Q4, with margins expected to jump to 47%.

"Net-net, we're still bullish, but with conviction at 7/10 rather than the 9/10 we had heading into last quarter," the report said.

UBS reiterated its buy rating while lowering its price target to $1,277 from $1,320.

Price: 1064.60, Change: -14.82, Percent Change: -1.37