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Valued at a market cap of $8.2 billion, Invesco Ltd. (IVZ) is a publicly owned investment manager that offers a wide range of investment products and services. The Atlanta, Georgia-based company manages separate client-focused equity and fixed-income portfolios and also launches equity, fixed-income, commodity, multi-asset, and balanced mutual funds for its clients.
This investment management company’s shares have underperformed the broader market over the past 52 weeks. IVZ has gained 16.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 21.8%. Nevertheless, the stock is up 5.2% on a YTD basis, compared to SPX’s 2.7% rise during the same time frame.
Zooming in further, Invesco has lagged behind the Financial Select Sector SPDR Fund’s (XLF) 31.2% return over the past 52 weeks and a 5.8% gain on a YTD basis.
On Feb. 3, Invesco’s shares closed down 4.6% after Vanguard Group announced fee reductions across multiple mutual funds and ETFs, increasing competitive pressure in the asset management industry. Other major asset managers, including BlackRock (BLK) and State Street (STT), also saw declines.
Nonetheless, on Jan. 28, shares of IVZ rose nearly 9% after its Q4 and fiscal 2024 earnings release as the company delivered better-than-expected Q4 adjusted earnings of $0.52 per share and adjusted revenues of $1.2 billion, which came in line with the Street’s forecast. Moreover, both revenues and earnings grew 10.6% year-over-year, driven by a slight decline in adjusted expenses, strong asset growth, and higher performance fees. Total Assets Under Management (AUM) increased 2.8% sequentially and 16% year-over-year to $1.85 trillion, fueled by a $26 billion increase in AUM during the quarter, contributing to the company’s strong performance.
For the current fiscal year, ending in December 2025, analysts expect IVZ’s EPS to grow 8.2% year over year to $1.85. The company’s earnings surprise history is mixed. It met or surpassed the Wall Street estimates in three of the last four quarters while missing on another occasion.
Among the 18 analysts covering the stock, the consensus rating is a “Hold,” which is based on two “Strong Buy,” 15 “Hold,” and one “Strong Sell” rating.
On Feb. 4, UBS Group maintained a “Neutral” rating on IVZ and raised its price target to $21, which indicates a 14.2% potential upside from the current levels.
The mean price target of $19.72 represents a 7.2% upside from IVZ’s current price levels, while the Street-high price target of $22 suggests an upside potential of 19.6%.
