Deutsche Bank Starts T. Rowe Price (TROW) at Buy

Deutsche Bank initiated coverage on T. Rowe Price (NASDAQ: TROW) with a Buy rating and a price target of $93.00.

Analyst Brian Bedell said, "We see TROW as among the most consistent stories in asset management with a stronger market position than perceived, for the following reasons: 1) major stronghold in defined contribution with 401k administration business that provides good sale/redemption dynamics including high rollover recapture rates, 2) excellent position in ‘solutions’ growth area via scalable and efficient target date products, 3) solid investment culture & track record with improving ability to achieve alpha via expanded investment staff globally, 4) higher growth AuM mix with heavy active equity concentration, and 5) long-tenured proven mgmt team with relatively simple and straightforward business model."

"Key positive catalysts for the stock over next 12 months are: 1) inflection to improved net flows in 2014 after significant loss of several large institutional mandates in 2013, 2) continued traction in target date funds, with especially strong competitive performance, 3) continued op margin improvement on good cost control and high incremental margins on scaled AuM base," he added.

For an analyst ratings summary and ratings history on T. Rowe Price click here. For more ratings news on T. Rowe Price click here.

Shares of T. Rowe Price closed at $81.03 yesterday.

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