Brennan Hawken, an analyst from BMO Capital, maintained the Buy rating on Invesco. The associated price target remains the same with $28.00.
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Brennan Hawken has given his Buy rating due to a combination of factors that highlight Invesco’s strategic initiatives and financial outlook. One of the key reasons is the anticipated approval of the Qs proxy vote, which is seen as a matter of ‘when, not if.’ This vote is expected to reduce the expense ratio by 10%, which should proceed smoothly once approved, enhancing operational efficiency. Additionally, Invesco’s efforts to streamline its balance sheet by focusing on debt reduction and preferred stock transactions are viewed positively, with the company making significant strides in this area.
Brennan Hawken also notes that concerns regarding Schwab’s potential revenue share on ETFs might be overstated. The negotiations are still in the early stages, and the actual revenue share is likely to be less than initially reported. Furthermore, Invesco’s management has provided conservative guidance on net economics, which, when combined with their strategic focus on execution and shareholder value creation, presents a strong case for future earnings growth. These factors collectively underpin the Buy rating for Invesco’s stock.
In another report released on November 12, TD Cowen also maintained a Buy rating on the stock with a $32.00 price target.
IVZ’s price has also changed dramatically for the past six months – from $15.650 to $23.980, which is a 53.23% increase.