Goldman Sachs maintains Invesco stock with $19 target

Published 28/01/2025, 17:30
Goldman Sachs maintains Invesco stock with $19 target

On Tuesday, Goldman Sachs reiterated a Neutral rating on Invesco (NYSE:IVZ) shares, with a steady price target of $19.00. The firm’s analysis followed Invesco’s report of adjusted earnings per share (EPS) of $0.52, surpassing the consensus estimate of $0.47 by 11%. This beat was attributed to higher performance fees, effectively managed expenses, and a marginally lower tax rate. According to InvestingPro data, Invesco maintains a "GOOD" overall financial health score, and current analysis suggests the stock is trading near its Fair Value. Want deeper insights? InvestingPro offers comprehensive analysis with 8+ additional analyst ratings and detailed financial health metrics.

The operating income for Invesco was 8% above the expectations set by Visible Alpha Consensus Data, which predicted $365 million. Invesco’s operating margin reached 33.7%, over 200 basis points higher than anticipated by the Street. Even after adjusting for a $13.1 million insurance recovery included in general and administrative expenses, the operating income still exceeded estimates by approximately 4%, and the operating margin would have been 32.6%, which is 100 basis points better than expected. InvestingPro data reveals strong financial flexibility with a current ratio of 4.42 and a notably low debt-to-equity ratio of 0.08, indicating robust balance sheet health.

Invesco’s performance fees were notably stronger than anticipated, leading to a 1% net revenue beat. This helped to counterbalance pressures on management fees. The net management fee rate decreased quarter over quarter from 25.3 basis points to 24.6 basis points and was slightly below consensus predictions, although it aligned with Goldman Sachs’ expectations. Additionally, Invesco tightened their fee rate ranges by product, which should result in about a 1 basis point decline in blended fee rate compared to last quarter’s targets.

Long-term inflows, excluding non-management fee generating assets under management (AUM), amounted to $26 billion, spurred by ETF and Index inflows totaling over $30 billion. The trend in inflows continues to favor passive investments. Goldman Sachs noted improvement in Invesco’s expense management and acknowledged 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, potentially leading to stable or slightly positive organic base fee growth. InvestingPro analysis highlights that Invesco has maintained dividend payments for 18 consecutive years and is expected to be profitable this year. Get access to the full Pro Research Report covering Invesco’s complete financial picture, along with detailed analysis of 1,400+ other top stocks.

In other recent news, Invesco Ltd . reported strong Q4 earnings, exceeding analyst estimates. The asset manager posted adjusted earnings per share of $0.52, surpassing projections of $0.48. Revenue met expectations, coming in at $1.16 billion. Invesco saw significant growth, with $25.6 billion of net long-term inflows primarily from ETFs and Asia Pacific managed products. Total (EPA:TTEF) assets under management rose to $1.85 trillion, marking a 16.4% increase year-over-year. Additionally, the company’s adjusted operating margin for Q4 was 33.7%, up from 31.6% in the previous quarter. As a recent development, Invesco repurchased 1.4 million shares for $25 million during the quarter. Lastly, the company declared a quarterly cash dividend of $0.205 per share.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.