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On Wednesday, Invesco (NYSE:IVZ) saw its price target increased by TD Cowen analysts, signaling confidence in the investment management firm’s future performance. The firm’s price target was raised to $22.00, up from the previous $22.00, with a reiterated Buy rating. Currently trading at $19.23, near its 52-week high of $19.48, Invesco has demonstrated strong momentum with an 11.02% return over the past week. According to InvestingPro analysis, the stock appears fairly valued based on its comprehensive Fair Value model, which considers multiple valuation metrics and growth factors.
The adjustment followed Invesco’s fourth-quarter results, which were reported on Sunday, January 28, 2025. Analysts at TD Cowen expressed optimism, particularly regarding Invesco’s expense growth management, which they identified as a previously uncertain factor amidst solid flows and improved capital management flexibility. With a market capitalization of $8.65 billion and an attractive P/E ratio of 11.34, Invesco offers investors a compelling dividend yield of 4.24%. InvestingPro subscribers can access 8 additional key insights and a comprehensive Pro Research Report that provides deep-dive analysis of Invesco’s financial health and growth prospects.
The firm’s adjusted earnings per share (EPS) estimates for 2025 and 2026 were also modestly increased. The new 12-month price target of $22.00 was noted as the highest among Wall Street predictions. TD Cowen maintained its non-consensus Buy rating, suggesting that the market may not fully appreciate Invesco’s value yet. The stock has rewarded investors with a strong 23.92% return over the past year, reflecting growing market confidence in its business model.
The analysts highlighted three key takeaways from Invesco’s recent quarterly report. Firstly, the constructive dialogue around expenses was seen as reducing potential downside risks to earnings expectations. Secondly, the overall discussion was expected to shift investor valuation perspectives further into 2026. Lastly, TD Cowen anticipates another year of outsized long-term net new assets annualized organic growth rate (LT NNA AOGR) for 2025, while noting that the base fee rate degradation is mostly known and presumably factored into valuations.
Invesco’s stock movement on Wednesday reflects these updated expectations from TD Cowen, as investors respond to the positive outlook and higher price target set by the firm.
In other recent news, Invesco Ltd . reported strong fourth-quarter earnings, surpassing analyst estimates with adjusted earnings per share of $0.52, an 11% exceedance of the consensus estimate of $0.47. This success was primarily attributed to higher performance fees, effectively managed expenses, and a slightly lower tax rate. The company’s operating income was 8% above the expectations set by Visible Alpha Consensus Data, which predicted $365 million.
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 recent developments, Citi analyst Chris Allen increased the price target on Invesco shares to $20.00, up from the previous target of $18.50, while maintaining a Neutral rating on the company. Despite a higher expected tax rate for the fiscal year 2025, Allen’s earnings per share (EPS) estimate for 2025 remains virtually unchanged at $1.89.
On the other hand, Goldman Sachs reiterated 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 the current understanding and could be balanced by strong inflows.
These are some of the recent developments that have been shaping the financial landscape for Invesco.
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