Invesco Ltd. (IVZ) is a leading independent investment management firm based in Atlanta, Georgia. Valued at $7.10 billion by market cap, it is known for its robust portfolio management and innovative strategies. Invesco offers a diverse range of products across equities, fixed-income, alternatives, and multi-asset classes.
Invesco has significantly underperformed the broader market over the past year. The stock has gained 3.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 28.6%. In 2024, IVZ stock tumbled 12.4% compared to SPX's 11.6% return on a YTD basis.
Narrowing the focus, IVZ lagged behind the Financial Select Sector SPDR Fund (XLF) 29.4% return over the past year. However, the stock's double-digit YTD loss is far behind the exchange-traded fund's 11.1% returns over the same time frame.
On Apr. 23, Invesco reported Q1 earnings, which fell short of Wall Street expectations for both EPS and revenue. The stock declined 6.4% on the day it released earnings and also experienced a slight decrease the following day.
For the current fiscal year, ending in December 2024, analysts expect IVZ’s EPS to grow 8.6% to $1.64 on a diluted basis. The company's earnings surprise history is disappointing. It missed the consensus estimate in three of the last four quarters and exceeded on another occasion.
Among the 15 analysts covering IVZ stock, the consensus rating is a “Hold.” That’s based on two “Strong Buy” ratings, and 13 “Holds.”
This configuration is slightly less bullish than three months ago, with one analyst suggesting a "Moderate Buy" along with two “Strong Buys.”
On May 15, William Katz from TD Cowen maintained a “Buy” rating on Invesco with a price target of $19.50. However, Alexander Blostein from Goldman Sachs (GS) maintained a “Hold” rating on the stock, with a price target of $16.75.
The mean price target of $16.91 represents a 7.1% premium to IVZ’s current price levels. The Street-high price target of $19.50 suggests an upside potential of 23.5%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
