Deutsche Bank Downgrades T. Rowe Price (TROW) to Hold

Deutsche Bank downgraded T. Rowe Price (NASDAQ: TROW) from Buy to Hold with a price target of $75.00 (from $79.00).

Analyst Brian Bedell said, "We are downgrading TROW to Hold from Buy given: 1) after three quarters of improving organic growth, we think net flows may become challenged again for TROW over at least next 2-3 quarters, 2) long-term performance remains very strong, but 1-yr relative performance has eased, including in target-date fund series (growth is underperforming value YTD), 3) the risk of accelerating outflows for active mutual funds industry-wide may weigh on TROW's relative P/E (which we are reducing to 15% discount vs. S&P 500 from 10% discount), & 4) we think mgmt may save stock repurchase dry powder for a market correction & thus S&P 500 near all-time highs may suppress this near term."

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 $74.08 yesterday.

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