Analysts have modestly reduced Invesco’s price target to $22.58, citing improved net flows, enhanced profitability prospects from the QQQ ETF conversion, and a better risk profile—tempered by persistent leverage and slightly weaker revenue growth expectations.
Analyst Commentary
- Bullish analysts highlight the QQQ conversion to ETF status as positioning Invesco for improved profitability.
- Net flows in Q2 were among the strongest relative to peers, supporting higher valuations.
- The risk profile has improved, attributed to a slowing pace of fee-rate pressure.
- Margin expansion potential is seen from better equity markets, ongoing expense discipline, and a positive revenue outlook.
- While company leverage remains elevated, analysts note it is trending lower.
What's in the News
- Invesco expanded its active fixed income platform by launching two new actively managed ETFs: Invesco Core Fixed Income ETF (GTOC) and Invesco Intermediate Municipal ETF (INTM), offering tailored solutions for investors seeking high-quality investment-grade fixed income and municipal bond exposure.
- The fixed income platform now manages over $491 billion globally, leveraging a 182-member team with extensive industry experience.
- From April 1 to June 30, 2025, Invesco repurchased 1,745,987 shares for $25 million, completing the repurchase of 63,989,446 shares (14.56% of shares outstanding) for $1.23 billion under its buyback program.
Valuation Changes
Summary of Valuation Changes for Invesco
- The Consensus Analyst Price Target has fallen slightly from $23.08 to $22.58.
- The Consensus Revenue Growth forecasts for Invesco has fallen slightly from -7.9% per annum to -8.2% per annum.
- The Future P/E for Invesco remained effectively unchanged, moving only marginally from 12.16x to 11.94x.
Disclaimer
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