UPDATE: UBS Downgrades T. Rowe Price (TROW) to Sell
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UBS analyst Brennan Hawken downgraded T. Rowe Price (NASDAQ: TROW) from Neutral to Sell with a price target of $88.00 (from $138.00).
The analyst comments "We are downgrading TROW to Sell from Neutral based on substantially lower estimates ('23E -36%), a weak flow outlook driven by deteriorating performance, and lower expected fee adjusted organic growth. In recent years, tailwinds for growth equity have favored TROW's flows, fee growth and margins; as the backdrop turns negative for growth equity, we expect these positive dynamics to reverse. Meanwhile, TROW's fund performance has declined firmwide and notably in equities (see next bullet). This has already generated meaningful outflows, which we expect to accelerate as the important three-year track record has deteriorated significantly this year. The cash payment and related contingencies for the Oak Hill (OHA) purchase, leave TROW with less B/S strength, against a challenging backdrop."
Shares of T. Rowe Price closed at $115.96 yesterday.
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