The company's net flows may become challenged over at least the next two to three quarters following three quarters of improving organic growth, the firm said.
While long-term performance remains very strong, T. Rowe's one-year relative performance has eased, including in target-date fund series, according to Deutsche Bank.
Additionally, the risk of accelerating outflows for active mutual funds industry-wide may weigh on the company's relative P/E, the firm noted.
Management could also save stock repurchases for a market correction, which could be suppressed in the near-term as the S&P 500 is near all-time highs, Deutsche Bank said.
The financial holding company is based in Baltimore.
Shares of T. Rowe closed lower by 0.01% to $74.07 on Wednesday.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.
The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins and growth in earnings per share.
The team believes its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: TROW