- T. Rowe Price Group (NASDAQ:TROW) shares are drifting down 2.1% in early Monday morning trading after UBS analyst Brennan Hawken cut the asset manager to Sell from Neutral on the basis of a weak flow outlook driven by a slump in fund performance.
- Hawken also raised concerns about T. Rowe's (TROW) "lower expected fee adjusted organic growth," as the backdrop in growth equity turns negative, the analyst wrote in a note to clients.
- Overall, outflows are expected to accelerate at T. Rowe (TROW), "as the important three-year track record has deteriorated significantly this year" amid cyclical market depreciation, Hawken noted. In May, T. Rowe's (TROW) assets under management slid again to $1.40T, highlighted by a decline in AUM in its equity U.S. mutual funds.
- SA's Quant Rating, meanwhile, warned investors in March that T. Rowe (TROW) shares are at high risk of performing badly due to decelerating momentum and declining growth. TROW is off around 16% since that bearish call.
- Take a look at why SA contributor BeanKounter Capital believes T. Rowe is getting closer to a Strong Buy.
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