Wells Fargo Raises Valuation Range on T. Rowe Price (TROW), Cuts Estimates on Weaker Outlook
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Price: $111.51 -0.61%
Rating Summary:
3 Buy, 15 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
3 Buy, 15 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Wells Fargo is reiterating its Market Perform rating on shares of T. Rowe Price (NASDAQ: TROW), while raising its price valuation range from $53-$$56 to $59-$62.
The company released its Q4 2011 results today with both earnings and sales topping expectations. TROW recorded EPS of $0.73 on $$671.6 million in sales, topping the Street's consensus of $0.69 on $658.33 million in sales.
Due to modestly weaker organic growth than previously expected, the firm is lowering its FY12 EPS estimate from $3.12 to $3.10. Wells Fargo is also introducing its FY13 estimate at $3.50.
The firm forecasts $200 million in buybacks in 2012 and 2013. The company reported $897.9 million in cash at December 31 to go along with its debt free balance sheet.
An analyst at Wells Fargo comments, "We rate TROW shares Market Perform. Relative to asset management peers, TROW has demonstrated strong historical investment performance, consistent organic growth and an operating margin well above the industry average. We also appreciate TROW's high quality balance sheet and management depth. However, TROW shares are currently at a significant premium to asset management peers, which we believe will limit upside potential in the near-term, especially given somewhat weak flow trends in the 2H 2012."
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 $61.04 yesterday.
The company released its Q4 2011 results today with both earnings and sales topping expectations. TROW recorded EPS of $0.73 on $$671.6 million in sales, topping the Street's consensus of $0.69 on $658.33 million in sales.
Due to modestly weaker organic growth than previously expected, the firm is lowering its FY12 EPS estimate from $3.12 to $3.10. Wells Fargo is also introducing its FY13 estimate at $3.50.
The firm forecasts $200 million in buybacks in 2012 and 2013. The company reported $897.9 million in cash at December 31 to go along with its debt free balance sheet.
An analyst at Wells Fargo comments, "We rate TROW shares Market Perform. Relative to asset management peers, TROW has demonstrated strong historical investment performance, consistent organic growth and an operating margin well above the industry average. We also appreciate TROW's high quality balance sheet and management depth. However, TROW shares are currently at a significant premium to asset management peers, which we believe will limit upside potential in the near-term, especially given somewhat weak flow trends in the 2H 2012."
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 $61.04 yesterday.
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