T. Rowe Price Continues to Face Headwinds Created by a Rising Interest Rate Environment

We've lowered our fair value estimate for wide-moat-rated T. Rowe Price to $110 per share from $120 to account for weaker equity and credit market returns in the near term, which will have a negative impact on the company's assets under management, or AUM. T. Rowe Price reported a nearly 25% decline in its managed assets during 2022 as rising interest rates negatively affected growth equities, which make up a major portion of the company's equity platform, leading to both market losses and outflows.