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T. Rowe Price - Buy Thesis

It is likely that investors are familiar with T. Rowe Price Group (TROW) as a brand, having invested in its sponsored mutual funds previously, yet it's not as well known for stock pickers. There is reason to believe that it shouldn't fly below an investor's radar for much longer. The stock currently trades at $63.77, and I am forecasting an $80 price target through 2013. Given the upside potential, perpetually increasing dividend stream, and minimal risk on the downside, TROW shares offer an attractive risk/reward. Following are a few key factors I foresee contributing to share price appreciation in 2013 and over longer time horizons:

  • Reduced facility expansion expenses result in