Invesco (IVZ) Is Up 8.8% After Premium Preferred Buyback And LGT Tie-Up Has The Bull Case Changed?

• Earlier this month, Invesco Ltd. agreed to repurchase US$500 million of its 5.9% Series A preferred shares from MassMutual at an 18% premium, while also forming a partnership with LGT Capital Partners to build multi-alternative private markets solutions for U.S. wealth and retirement investors.
• Together, these steps highlight Invesco’s focus on reshaping its capital structure and deepening its presence in higher-fee private markets offerings.
• We’ll now explore how this preferred share buyback shapes Invesco’s existing investment narrative around margins, capital allocation, and private markets growth.

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Invesco Investment Narrative Recap

To own Invesco, I think you need to believe it can defend margins while repositioning from traditional active products toward higher-fee alternatives and scalable ETF offerings. The US$500 million Series A preferred repurchase modestly tightens the capital structure but does not materially change the near term earnings catalyst, which remains execution on private markets expansion. The biggest current risk is that fee and margin pressure persist as investors continue shifting to lower cost products and competitors.

The new partnership with LGT Capital Partners looks especially relevant here because it directly reinforces Invesco’s push into multi alternative private markets solutions for U.S. wealth and retirement clients. If Invesco can turn that expanded alternatives platform into sustained inflows and better revenue mix, it could help offset ongoing fee compression in traditional active strategies and support the margin story investors are watching most closely right now.

Yet against this opportunity, investors should also be aware that accelerating competition in ETFs and active equities could still...

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

Invesco’s narrative projects $4.8 billion revenue and $1.1 billion earnings by 2028. This requires an 8.2% yearly revenue decline and about a $677 million earnings increase from $422.9 million today.

Uncover how Invesco's forecasts yield a $26.38 fair value, in line with its current price.

Exploring Other Perspectives

Four members of the Simply Wall St Community value Invesco between US$8.11 and US$27.61, highlighting how far apart individual views can be. When you set those ranges against the risk of long term fee and margin pressure from the shift toward low cost products, it underlines why it can be useful to compare several independent perspectives before forming your own view.

Explore 4 other fair value estimates on Invesco - why the stock might be worth less than half the current price!

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 4 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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