Market Overview

UPDATE: Citi Downgrades T. Rowe Price Group

Share:
Related TROW
Earnings Scheduled For April 22, 2015
2 Asset Managers Jefferies Is Watching
Lazard (LAZ) Q1 Earnings Beat on Higher Revenues - Analyst Blog (Zacks)

In a report published Tuesday, Citi analyst Neil Stratton downgraded T. Rowe Price Group (NASDAQ: TROW) to Neutral from Buy, dropping its price target to $85.00 from $93.00.

According to the report, the downgrade represents recent fund closures and PM turnover are likely to temper flow recovery. 2014 is now seen as yet another tepid flow year for TROW, likely limiting price appreciation given already premium valuation, mixed margin dynamics and uneven capital management.

“On 1/16, the PM for TROW Growth Stock unexpectedly resigned,” the report noted. “This manager oversaw ~$52B in growth equity AUM, including ~$42B in mutual funds and ~$10B in other mandates. The announcement follows partial closures on New Horizons and Small Cap Stock, as well as PM changes in 2013 for Health Sciences and New America, casting uncertainty on nearly 20% of AUM and recent flow drivers. We do not see the same optical pressures akin to that recently experienced by IVZ but the incremental flow picture/recovery argument is now watered down and likely to temper upside, in our view.”

TROW closed Friday at $81.86.

Latest Ratings for TROW

DateFirmActionFromTo
Apr 2015CitigroupMaintainsNeutral
Apr 2015JP MorganMaintainsUnderweight
Apr 2015Keefe Bruyette & WoodsMaintainsMarket Perform

View More Analyst Ratings for TROW
View the Latest Analyst Ratings

Posted-In: Citi Neil StrattonAnalyst Color Downgrades Price Target Analyst Ratings

 

Related Articles (TROW)

Around the Web, We're Loving...