T. Rowe Price (TROW) is navigating uneven slopes as prior heights remain in the distance, UBS said in a Tuesday report.

The report said retirement franchise remains a key strength, with about 65% of assets under management.

While newer growth areas such as ETFs and alternatives are expanding, they are too small to offset pressure in the legacy mutual fund business, the report said.

Continued organic outflows are expected through 2030, which will drive a gradual EPS decline, the note said, adding that flow trends have improved, but there remain doubts whether it can return to sustainably positive organic growth.

"Although investment performance has improved and several growth franchises are gaining traction, the scale of outflows in

legacy products outweighs newer inflowing businesses," it said.

UBS assumed coverage of the stock with a neutral rating and a price target of $107, citing "uncertain" growth outlook.

Price: 103.87, Change: +0.27, Percent Change: +0.26