Analyst Note| Greggory Warren, CFA |
There was little in wide-moat rated T. Rowe Price's first-quarter results that would alter our long-term view of the firm. We are leaving our $170 per share fair value estimate in place. T. Rowe Price closed out the March quarter with a record $1.518 trillion in managed assets, up 3.2% sequentially and 52.6% on a year-over-year basis. Net inflows of $1.2 billion during the first quarter were slightly worse than our expectations, which we had expected to be more on par with the $2.1 billion quarterly run rate we've seen from the firm the past five years. Even so, we still see the firm generating low-single-digit organic AUM growth this year as the company moves closer to the time when retiring baby boomers are less of a drag on its flows.