S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
On Tuesday, Citi analyst Chris Allen increased the price target on Invesco shares (NYSE:IVZ) to $20.00, up from the previous target of $18.50, while keeping a Neutral rating on the company. Currently trading at $19.34, near its 52-week high, Invesco’s stock responded positively following the company’s fourth-quarter 2024 results, which Allen described as solid due to improved flows and margins, and an encouraging outlook for 2025. According to InvestingPro data, the company maintains a healthy dividend yield of 4.62% and has shown strong financial health with an overall score of "GOOD."
The analyst noted that the positive financial performance and outlook for Invesco were somewhat balanced by a higher expected tax rate for the fiscal year 2025, now anticipated to be 25%. Despite this, Allen’s earnings per share (EPS) estimate for 2025 remains virtually unchanged at $1.89, only slightly down from the prior $1.90 estimate. However, the EPS forecasts for the following two years, 2026 and 2027, were revised upwards to $2.20 and $2.63, respectively, from the earlier projections of $2.14 and $2.46. Want deeper insights? InvestingPro subscribers have access to over 10 additional key financial metrics and ProTips for Invesco.
The revision of the price target to $20 reflects a valuation of 11 times the 2025 EPS estimate and 9 times the 2026 estimate. Allen’s commentary suggests that while the outlook for Invesco is favorable, particularly with respect to the steady flow picture and improving expense outlook, Citi is opting for a cautious stance, preferring to observe a more favorable risk/reward scenario before altering its rating.
Invesco’s recent performance and the updated financial estimates suggest that the company is navigating its business environment with success, and the market has taken note of its strong fourth-quarter results and positive projections for the upcoming years. The new price target from Citi is indicative of Invesco’s potential for continued growth and financial health.
In other recent news, Invesco Ltd . reported robust Q4 earnings, surpassing analyst estimates. The company posted adjusted earnings per share of $0.52, exceeding the consensus estimate of $0.47 by 11%. This success was attributed to higher performance fees, well-managed expenses, and a slightly lower tax rate. Invesco’s operating income was 8% above the expectations set by Visible Alpha Consensus Data, which predicted $365 million. The company’s operating margin reached 33.7%, over 200 basis points higher than anticipated.
Invesco also reported strong inflows, with long-term inflows excluding non-management fee generating assets under management (AUM) amounting to $26 billion, spurred by ETF and Index inflows totaling over $30 billion. Total (EPA:TTEF) assets under management rose to $1.85 trillion, marking a 16.4% increase year-over-year. In a recent development, Invesco repurchased 1.4 million shares for $25 million during the quarter.
Goldman Sachs maintained a Neutral rating on Invesco shares, with a steady price target of $19.00. The firm acknowledged improvement in Invesco’s expense management and noted that while the management fee rate is expected to continue its downward trend, this risk is already factored into current understanding and could be balanced by strong inflows.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.