Wall Street analysts continue to be less enamoured with mutual fund firm stocks. The latest fund sponsor to see its shares downgraded is T. Rowe Price, which Ticonderoga Securities downgraded to a "hold" from a "buy" on Monday. The analysts' price target for T. Rowe was $55 a share.
The move was based on "Shattered retail confidence, substantial equity fund outflows, continued passive penetration, and the prospects of a fiduciary standard present near-term headwinds for the mutual fund business."
Those factors will lead to "underwhelming flows" across the fund industry, according to the anlayst.
The report also stressed "emerging pressure on the 401k business from the SEC and the Department of Labor."
Sean Hanna, Editor in Chief
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