How Invesco's (IVZ) Strong Earnings and Private Market Expansion Have Changed Its Investment Story

• Invesco Ltd. recently reported third quarter results, showing significant year-over-year growth in both revenue and net income, alongside a new share repurchase update and quarterly dividend affirmations for both common and preferred shareholders.
• The company also indicated an ongoing focus on mergers and acquisitions in private markets, highlighting $130 billion in assets and future growth ambitions in this segment.
• We'll explore how this strong earnings growth and expanding private markets focus may influence Invesco's investment narrative going forward.

Find companies with promising cash flow potential yet trading below their fair value.

Invesco Investment Narrative Recap

To be a shareholder in Invesco, you need conviction in its ability to adapt as investor preferences shift toward passive strategies and alternatives, driving fee resilience and capital returns. The latest Q3 results, marked by robust earnings growth and continued share buybacks, reinforce a key short-term catalyst: expanding higher-fee private market offerings. These developments do not materially alter the biggest risk right now, which remains ongoing margin pressure from competition and net outflows in traditional active products.

Among the recent announcements, management’s reaffirmation of the quarterly $0.21 per share common dividend stands out. This move highlights Invesco’s commitment to consistent capital returns, supporting the investment case in the near term, even as competition and margin compression persist.

Yet, in contrast to these strengths, investors should be aware that persistent net outflows in active equity strategies remain a…

Read the full narrative on Invesco (it's free!)

Invesco's outlook anticipates $4.8 billion in revenue and $1.1 billion in earnings by 2028. This is based on an expected annual revenue decline of 8.2% and an earnings increase of $677 million from current earnings of $422.9 million.

Uncover how Invesco's forecasts yield a $26.27 fair value, a 11% upside to its current price.

Exploring Other Perspectives

Fair value estimates from three members of the Simply Wall St Community cluster between US$25.61 and US$27.96 per share. Persistent net outflows in traditional active products could impact earnings resilience, so consider the variety of perspectives before making up your mind.

Explore 3 other fair value estimates on Invesco - why the stock might be worth just $25.61!

Build Your Own Invesco Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Invesco research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Invesco research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Invesco's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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