Barclays Initiates Coverage on Invesco Ltd. (NYSE:IVZ) with Equal Weight Rating and $18 Price Target
Barclays recently started covering shares of Invesco Ltd., a global investment management firm, with an Equal Weight rating and a price target of $18. This new rating takes into account Invesco's strong performance in fund flows and sales, but also highlights challenges in revenue growth due to a shift towards lower-fee product categories.
Invesco has shown better-than-average flow profile in recent quarters, with strength in both active and passive fund offerings. However, the majority of sales have been concentrated in lower-fee categories like ETFs and QQQs. This shift has led to negative organic revenue in recent quarters, despite some positive growth in the second quarter.
Barclays noted that the positive growth in the second quarter was not typical for Invesco, indicating ongoing revenue challenges. The $18 price target suggests that the firm's current market performance is adequately valued.
In other news, Invesco reported strong earnings for the second quarter, with a 12% year-over-year increase in AUM. Analysts have also raised price targets for the stock, reflecting confidence in Invesco's financial strategy and expansion plans.
Overall, Invesco's recent performance has been positive, but the shift towards lower-fee products poses challenges for revenue growth. Investors should consider these factors when evaluating the stock for their portfolios.
In conclusion, while Invesco has shown strength in fund flows and sales, the company faces revenue challenges due to a shift towards lower-fee product categories. Analysts are cautiously optimistic about the stock's performance, with price targets reflecting a neutral to positive outlook. Investors should closely monitor Invesco's financial strategy and expansion plans to make informed investment decisions.