- "Squeezed at both ends," is how UBS analyst Brennan Hawken describes the outlook for T. Rowe Price (TROW -2.5%) as he downgrades to Sell from Buy. He cuts his price target to a Street-low $61, suggesting more than 10% downside from yesterday's close.
- While a lot of focus is on the DOL's fiduciary rule - and that's certainly going to hurt - less noticed is the 2010 DOL rule boosting transparency into 401k fees - with plaintiffs lawyers widening their targets to include the smaller plans at the core of T. Rowe Price's retirement business.
- Then there's the cost side, and expense headwinds are "unavoidable just to tread water," says Hawken.
- Source: Bloomberg