T. Rowe Price Group, Inc. (NASDAQ: TROW) has struggled to regain momentum as investor sentiment toward active managers remains cautious. The stock trades near $103/share, down roughly 14% over the past year. Despite that, the firm’s strong margins, debt-free balance sheet, and reliable dividends continue to attract long-term investors.
Recently, T. Rowe Price announced plans to expand its active ETF lineup and launched new retirement income products aimed at capturing demand from baby boomers transitioning out of the workforce. The firm also highlighted improving client retention and modest net inflows in its target-date franchise, signaling early signs of stabilization after several quarters of outflows. These moves show TROW’s efforts to adapt its business model and regain traction with both retail and institutional clients.
This article explores where Wall Street analysts think T. Rowe Price could trade by 2027. We have pulled together consensus targets and TIKR’s Guided Valuation Model to outline the stock’s potential path. These figures reflect current analyst expectations and are not TIKR’s own predictions.
Find out what a stock’s really worth in under 60 seconds with TIKR’s new Valuation Model (It’s free) >>>
Analyst Price Targets Suggest Modest Upside
T. Rowe Price trades around $103/share today. The average analyst price target is $110/share, suggesting roughly 7% upside from current levels. Forecasts show a fairly tight range, reflecting cautious optimism rather than strong conviction:
- High estimate: ~$126/share
- Low estimate: ~$98/share
- Median target: ~$111/share
- Ratings: 1 Buy, 10 Holds, 3 Underperforms, 1 Sell
For investors, analysts expect modest gains ahead. The limited upside signals that most of the near-term recovery may already be priced in, but dividend income and operational stability could still help the stock outperform if markets stay favorable and flows begin to stabilize.
Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free) >>>
T. Rowe Price: Growth Outlook and Valuation
The company’s fundamentals remain healthy, though growth expectations are subdued:
- Revenue growth: ~4% annually through 2027
- Operating margin: ~36%
- Forward P/E multiple: ~10×
- Based on analysts’ average estimates, TIKR’s Guided Valuation Model using a 10× forward P/E suggests around $120/share by 2027
- That implies about 17% total return, or roughly 7.5% annualized
For investors, these numbers highlight a steady income-oriented stock with modest upside potential. The valuation appears reasonable, and its strong cash generation supports consistent dividends, but faster inflows will be needed for meaningful multiple expansion.
See a stock’s true value in under 60 seconds (Free with TIKR) >>>
What’s Driving the Optimism?
T. Rowe Price continues to benefit from a loyal client base and a strong reputation in active management. Its retirement and target-date fund businesses remain core strengths, providing steady fee income even during volatile markets. The firm’s clean balance sheet and consistent profitability reflect solid operational discipline.
Management’s focus on expanding its ETF lineup and income-oriented strategies shows it is adapting to changing investor preferences. For investors, these moves reinforce the company’s ability to stay relevant and maintain earnings resilience despite industry headwinds.
Bear Case: Fee Pressure and Market Headwinds
Fee compression remains a persistent challenge across the asset management industry as passive investing continues to grow. T. Rowe Price’s reliance on equity-heavy products also makes its results sensitive to market fluctuations.
Competition from lower-cost managers like Vanguard and BlackRock could limit inflows if active funds fail to outperform. For investors, the main risk is that growth remains muted and valuation upside capped, leaving dividend income as the primary driver of returns.
Outlook for 2027: What Could TROW Be Worth?
Based on analysts’ average estimates, TIKR’s Guided Valuation Model suggests T. Rowe Price could trade near $120/share by 2027. That would represent roughly 17% total return, or about 7.5% annualized gains from current levels.
While this implies a steady recovery, it already assumes stable markets and continued cost control. To deliver stronger upside, TROW would need to boost asset inflows and capture more demand from new investor segments.
For investors, the stock looks like a dependable income play with limited but reliable upside potential, built for steady compounding rather than rapid growth.
AI Compounders With Massive Upside That Wall Street Is Overlooking
Everyone wants to cash in on AI. But while the crowd chases the obvious names benefiting from AI like NVIDIA, AMD, or Taiwan Semiconductor, the real opportunity may lie on the AI application layer where a handful of compounders are quietly embedding AI into products people already use every day.
TIKR just released a new free report on 5 undervalued compounders that analysts believe could deliver years of outperformance as AI adoption accelerates.
Inside the report, you’ll find:
- Businesses already turning AI into revenue and earnings growth
- Stocks trading below fair value despite strong analyst forecasts
- Unique picks most investors haven’t even considered
If you want to catch the next wave of AI winners, this report is a must-read.
Find out what your favorite stocks are really worth (Free with TIKR) >>>
