Invesco’s Hold Rating: Balancing Organic Growth and Near-Term Challenges Amid Macroeconomic Pressures

Analyst Craig Siegenthaler from Bank of America Securities maintained a Hold rating on Invesco (IVZ – Research Report) and decreased the price target to $15.00 from $18.00.

Craig Siegenthaler has given his Hold rating due to a combination of factors impacting Invesco’s performance. The company demonstrated solid organic growth of 5% in the first quarter of 2025, but this is expected to slow to 1% in the second quarter due to anticipated de-risking activities, particularly in equities. Additionally, while the integration of Alpha is expected to drive significant operating leverage by 2027, it will also lead to increased expenses in the near term.
Moreover, although Invesco’s strategic partnership with Barings and MassMutual’s provision of seed capital are positive developments, the overall macroeconomic environment remains challenging. This includes a higher tax rate and reduced management fees, which have led to a decrease in earnings per share and a lower price objective. Despite strong flows in secular growth areas like ETFs and private markets, the ongoing decline in fee rates due to a shift towards low-fee products contributes to the Hold rating.

Siegenthaler covers the Financial sector, focusing on stocks such as BlackRock, Invesco, and Blackstone Group. According to TipRanks, Siegenthaler has an average return of 13.8% and a 59.17% success rate on recommended stocks.

In another report released today, Barclays also maintained a Hold rating on the stock with a $14.00 price target.