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Atlanta, Georgia-based Invesco Ltd. (IVZ) is an independent investment management firm with a market cap of $11.5 billion. It is recognized for its comprehensive suite of investment capabilities, spanning public and private markets with a strong emphasis on ETFs, index strategies, and fundamental fixed income.
This asset management company has notably outperformed the broader market over the past 52 weeks. Shares of IVZ have rallied 82.8% over this time frame, while the broader S&P 500 Index ($SPX) has gained 26.6%. However, on a YTD basis, the stock is down marginally, lagging SPX’s 5.2% rise.
Zooming in further, IVZ has also outpaced the State Street Financial Select Sector SPDR ETF’s (XLF) 4.2% return over the past 52 weeks and 6% drop on a YTD basis.
On Apr. 28, shares of IVZ surged 1.5% despite delivering weaker-than-expected Q1 results. The firm recorded its 11th consecutive quarter of positive organic growth, supported by $22 billion in net inflows, reflecting strong, broad-based demand across its diversified global platform amidst global uncertainty, which might have bolstered investor confidence.
Its net revenue increased 14% year-over-year to $1.3 billion, slightly missing analyst estimates. Meanwhile, its adjusted EPS rose 29.5% from the prior-year quarter to $0.57, but came in one cent below consensus expectations.
For the current fiscal year, ending in December, analysts expect IVZ’s EPS to grow 26.6% year over year to $2.57. The company’s earnings surprise history is mixed. It topped the consensus estimates in two of the last four quarters, while missing on two other occasions.
Among the 13 analysts covering the stock, the consensus rating is a "Moderate Buy,” which is based on three “Strong Buy,” one “Moderate Buy,” and nine "Hold” ratings.
The configuration is less bullish than a month ago, with four analysts suggesting a "Strong Buy” rating.
On Apr. 30, Morgan Stanley (MS) analyst Michael Cyprys maintained an “Equal Weight” rating on IVZ and raised its price target to $28, indicating a 4.8% potential upside from the current levels.
The mean price target of $28.77 suggests a 7.7% premium to its current levels, while its Street-high price target of $32 implies a 19.8% potential upside from the current price levels.
