JP Morgan Upgrades T. Rowe Price to “Outperform”; Sees Strong Fund Performance (TROW)

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Investment manager T. Rowe Price Group, Inc. ( TROW ) on Friday received a big upgrade from analysts at JP Morgan.

The firm boosted its rating on TROW from "Neutral" to "Overweight" while lifting its price target from $73 to $77. That new target suggests a 16% upside to the stock's Thursday closing price of $66.41.

A JP Morgan analyst commented, "As we position our portfolio for 2013, we find the asset management sector attractive. We think strong returns in 2012 (S&P500 return ~18% this year) combined with meaningfully better returns than other asset classes and falling volatility could start to drive better retail reengagement in the mutual fund industry next year. With among the best fund performance, we see T. Rowe as a major beneficiary of retail reengagement. With the stock performing in line with the market, but underperforming peers, we think T. Rowe can again outperform."

T. Rowe Price shares were mostly flat in premarket trading Friday.

The Bottom Line
Shares of T.Rowe Price Group ( TROW ) have a 2.05% dividend yield, based on last night's closing stock price of $66.41. The stock has technical support in the $60-$62 price area. The shares are trading near all-time highs.

T. Rowe Price Group, Inc. ( TROW ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: TROW

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