T. Rowe Price price target lowered to $85 from $90 at BofA

BofA lowered the firm’s price target on T. Rowe Price (TROW) to $85 from $90 and keeps an Underperform rating on the shares. The firm cut estimates for the traditional asset managers “across the board” and maintains a cautious industry stance. If the U.S. equity market correction were to deepen, there is risk to fund flows, beta, and fee rates, offset by some expense pullback, the analyst tells investors in a research note. BofA says that given the correction occurred in month three of the quarter, management fees will be up in Q1 but should be down in Q2 if the markets don’t rebound. Most traditional asset managers are overweight active equities which consistently see outflows every year, contends the firm.