UPDATE: Bank of America Upgrades T. Rowe Price Group to Buy

Bank of America upgrades T. Rowe Price Group

from a Neutral to a Buy rating and maintain a price target of $74. Bank of America notes, “We are raising TROW to Buy as its funds continue to outperform peers, a rare feat in a tough market, and we expect share gains to continue as a result. TROW equity funds remain top third for 1, 3, 5, and 10 year time periods and they remained slightly above average in 2Q – a period in which only 20% of managers outperformed (see “Equity and Quant Strategy: Tough 2Q for active managers: just 1 in 5 beat the benchmark”. 7/6/12). This is being rewarded, and we forecast around $10bn.+ of inflows in 2Q, equivalent to 7% annualized organic growth vs perhaps 3% for the industry.” T. Rowe Price Group closed at $61.74 on Monday.