On Tuesday, Evercore ISI increased its price target for T. Rowe Price Group Inc. (NASDAQ:TROW) to $108.00, up from the previous target of $105.00, while maintaining an In Line rating for the stock. The revision follows T. Rowe Price's announcement that its total month-end assets under management (AUM) reached $1,506 billion, surpassing both Evercore ISI's and the Street's quarter-end estimates, which stood at $1,503 billion and $1,450 billion respectively.
The firm experienced a 4% month-over-month increase in AUM, attributed to market gains, although this was somewhat mitigated by organic declines. For February 2024, T. Rowe Price reported long-term outflows of $2 billion, or a 1.5% rate, which is an improvement from the anticipated monthly forecasts of approximately $3 billion to $4 billion and a significant reduction from the $5 billion outflow, a 4% rate, recorded in the previous month.
Despite this positive turn, T. Rowe Price has continued to face challenges, marking 11 consecutive quarters of net outflows and 32 negative retail months in succession. However, the outflows for February 2024 were noted as the lowest since what is believed to be the summer of 2022.
Looking at the first quarter, Evercore ISI and the Street have projected outflows of $11 billion and $13 billion, respectively, with $6.8 billion already accounted for two-thirds into the quarter. The average monthly AUM is currently tracking at $1,467 billion, which is approximately 1% higher than the forecasts for the first quarter, estimated at $1,474 billion and $1,453 billion by Evercore ISI and the Street.
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