Nomura Securities Adjusts FY12/13 Estimates on T. Rowe Price (TROW); Not Bad Considering Economic Backdrop
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Price: $108.62 -0.09%
Rating Summary:
3 Buy, 14 Hold, 6 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
3 Buy, 14 Hold, 6 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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Nomura Securities maintains a 'Neutral' on T. Rowe Price (NASDAQ: TROW) price target of $58.00.
Analyst, Glenn Schorr, said, "Not bad considering the backdrop and very likely better than most asset managers, but a little short vs. expectations on flows and revenues plus a more cautious outlook statement caused the stock to pull back a bit given its relative valuation, in our opinion. That said, don’t get too carried away, as TROW’s positive operating leverage, 3.5% organic growth, still solid margins and performance, strong capital/cash position, and ongoing buybacks will likely keep TROW at a healthy premium to the group (but range bound). While some struggle to attract flows and defend margins in tough markets as investors retrench on macro concerns, TROW produced respectable flows, positive operating leverage and solid 44.5% operating margin. Operating revenue of $737M was 2% shy of our estimates due to lower-than-expected average AUM and slight management fee compression. Our FY12E and FY13E decreases slightly, mostly on lower AUM, flows, and management fees partly offset by better expenses."
FY12 EPS from $3.23 to $3.15; FY13 EPS from $3.92 to $3.83.
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 $58.97 yesterday.
Analyst, Glenn Schorr, said, "Not bad considering the backdrop and very likely better than most asset managers, but a little short vs. expectations on flows and revenues plus a more cautious outlook statement caused the stock to pull back a bit given its relative valuation, in our opinion. That said, don’t get too carried away, as TROW’s positive operating leverage, 3.5% organic growth, still solid margins and performance, strong capital/cash position, and ongoing buybacks will likely keep TROW at a healthy premium to the group (but range bound). While some struggle to attract flows and defend margins in tough markets as investors retrench on macro concerns, TROW produced respectable flows, positive operating leverage and solid 44.5% operating margin. Operating revenue of $737M was 2% shy of our estimates due to lower-than-expected average AUM and slight management fee compression. Our FY12E and FY13E decreases slightly, mostly on lower AUM, flows, and management fees partly offset by better expenses."
FY12 EPS from $3.23 to $3.15; FY13 EPS from $3.92 to $3.83.
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 $58.97 yesterday.
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