Morgan Stanley Lifts T. Rowe Price Target to $109 on Q2 Earnings View

Morgan Stanley raised its price target on T. Rowe Price to $109 from $105 on June 26, keeping an Equal Weight rating. The firm bumped its second-quarter EPS estimates by an average of 7.5% and said it would buy traditional asset managers ahead of Q2 results, expecting broad-based earnings beats supported by fund flows and a favorable market backdrop.

T. Rowe reported May results on June 10. Assets under management rose to $1.89 trillion from $1.83 trillion in April. Net inflows hit $3.3 billion for the month, helped by a large contribution to its target-date retirement funds.

Equity assets climbed to $919 billion. Multi-asset assets increased to $691 billion. Target-date retirement funds grew to $623 billion, reflecting continued strength in the retirement-focused business.

The firm provides global investment advisory services across equity, fixed income, multi-asset, and alternative strategies. It serves individual investors, financial advisors, institutions, and retirement plan sponsors.

T. Rowe Price carries an Alpha Score of 70 out of 100, labeled Moderate, within the Financials sector. Morgan Stanley's own Alpha Score sits at 48, labeled Mixed.