TD Cowen increased its price target on T. Rowe Price Group to $110 from $108, citing stronger net asset value trends and the firm’s acquisition of Franklin Madison. Analyst Bill Katz maintained a Hold rating on the shares, which were trading at $109.67 as of the report.
T. Rowe Price reported adjusted diluted earnings per share of $2.57 for the second quarter of 2026, exceeding the $2.42 consensus estimate. Revenue reached $1.91 billion, above the $1.85 billion forecast. The company recorded $6.5 billion in net outflows during the period, though Katz noted the impact was partially offset by the Franklin Madison deal.
The stock has gained 20.73% over the past six months, with a price-to-earnings ratio of 11.2. T. Rowe Price has paid dividends for 41 consecutive years. TD Cowen adjusted its earnings estimates for 2026 and 2027 to reflect the latest asset flows and acquisition benefits.
The analyst also highlighted broader industry trends, noting $30 billion in inflows to equity ETFs and $19 billion to fixed income ETFs in July, while active equity and fixed income funds saw outflows of $5 billion and $2 billion, respectively. Katz cited these flows as supportive of T. Rowe Price’s strategy to counter legacy client attrition through acquisitions, leveraging a strong balance sheet and high free cash flow.
Separately, TD Cowen examined the potential implications of a reported transaction involving Perpetual, following an unconfirmed report in The Australian. Management has not commented on the speculation.
