, an analyst from BMO Capital, has initiated a new Buy rating on Invesco (IVZ).
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BMO Capital has given its Buy rating due to a combination of factors that highlight Invesco’s strategic initiatives and financial outlook. The firm has been addressing legacy challenges by modernizing its QQQs, which is expected to significantly boost management fees and alleviate pressure on net revenue yield. This modernization is anticipated to enhance the growth profile of the company, making its shares appear undervalued relative to its updated growth potential.
BMO Capital also notes Invesco’s efforts in de-leveraging, particularly through the paydown of MassMutual preferred equity, which provides a clearer path to reducing debt. Additionally, the firm sees positive momentum in Invesco’s China operations, with record assets under management driven by healthy flows and performance, despite geopolitical risks. The firm’s earnings estimates for 2026 and 2027 exceed consensus, and its valuation metrics suggest that Invesco’s stock is attractively priced, supporting the Buy recommendation.
In another report released on September 18, TD Cowen also maintained a Buy rating on the stock with a $30.00 price target.