Invesco stock shows improved flows as TD Cowen reiterates Buy rating

Published 12/08/2025, 15:34
Invesco stock shows improved flows as TD Cowen reiterates Buy rating

Investing.com - Invesco (NYSE:IVZ) received a reiterated Buy rating from TD Cowen on Monday, maintaining its $29.00 price target following the asset manager’s July assets under management (AUM) report. The stock, which has delivered a robust 34% return over the past year and trades at a P/E of 22.6x, appears slightly undervalued according to InvestingPro analysis.

The asset manager’s July AUM figures exceeded TD Cowen’s expectations, with long-term organic growth outperforming key industry peers who have reported thus far. The firm noted encouraging signs in Invesco’s business, including a further deceleration in equities attrition. With 11 analysts revising earnings estimates upward and a 19-year track record of consistent dividend payments, as revealed by InvestingPro data, the company shows strong fundamental stability.

TD Cowen highlighted strong volumes in Invesco’s China and India businesses, along with ongoing strength in fixed income products. The firm expects Invesco shares to trade "mixed/up" in response to the favorable flow dynamics.

The research note identified QQQ ETF run-off as a point to monitor, with some "lumpy" QQQ volumes extending into August that could partially offset positive momentum.

TD Cowen expressed particular encouragement regarding Invesco’s fixed income share gains, slowing equities attrition (which had been a significant base fee headwind previously), and continued momentum in China and India markets.

In other recent news, Invesco reported its second-quarter 2025 earnings, showcasing a significant revenue increase. The company achieved $1.51 billion in revenue, surpassing the forecasted $1.1 billion by 37.27%. However, earnings per share were slightly below expectations at $0.36, compared to the anticipated $0.40. Following these results, Jefferies raised its price target for Invesco to $21.00 from $16.00, maintaining a Hold rating, while BofA Securities increased its target to $23.00 from $17.00, keeping a Neutral rating. Both firms cited the upcoming QQQ fund reclassification as a potential catalyst for future growth. Additionally, Invesco expanded its active fixed income lineup by launching two new ETFs, further strengthening its global fixed income platform. These developments reflect ongoing efforts by Invesco to enhance its market position and financial performance.

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