TROW Stock Forecast & Price Target

T. Rowe Price Group's managed assets reached $1.767 trillion by the end of September, with a diverse asset composition of 50% equity, 35% balanced, 12% fixed-income and money market, and 3% alternative offerings. The firm benefits from a stable client base, as approximately two-thirds of its assets are held in retirement accounts, enhancing its revenue sustainability over time. Additionally, positive adjustments in 2026 estimates due to increased investment advisory fees and reduced product-related expenses, combined with $2.5 billion in net inflows from its expanding ETF product line, underscore a favorable outlook for growth despite some anticipated outflows in 2025.

T. Rowe Price Group reported a negative outlook primarily due to unexpected deterioration in operating margins, which could adversely impact earnings and valuation metrics. Additionally, despite reporting a beat largely driven by higher other income and lower income taxes, the firm's investment advisory segment experienced a miss due to a lower average assets under management (AUM) and a core fee rate slightly below expectations. With a significant portion of AUM derived from retirement-based accounts, T. Rowe Price faces challenges in performance and fee generation, which are crucial for long-term financial stability.