Will Del-Sette’s Stake in Invesco (IVZ) Reflect a Turning Point in Its Growth Strategy?

• Earlier this month, Del-Sette Capital Management disclosed a new investment in Invesco, acquiring 131,156 shares valued at approximately US$3.01 million and representing 1.87% of its reportable assets.
• This move followed Invesco’s report of record assets under management of US$2.1 trillion and a 6.2% quarterly growth, underlining strengthened operating margins and ongoing business transformation.
• We’ll examine how Invesco’s record asset growth and partnership with Barings influence its updated investment narrative and prospects.

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Invesco Investment Narrative Recap

To be an Invesco shareholder today, you need to have confidence in the firm's ability to drive growth in both passive and alternative investment products while managing the ongoing margin impact from lower-fee strategies. Del-Sette Capital Management’s recent acquisition confirms institutional conviction but does not significantly shift the near-term catalyst, which remains the company's pursuit of higher-fee revenue streams through product innovation and expanding alternative offerings. The largest risk still centers on margin pressure from continued outflows in active equity, and this development does not materially reduce it.

The recently announced Barings partnership is especially relevant, as it supports Invesco’s expansion in private credit and aims to capture demand for alternatives, an area seen as critical to balancing margin pressures from fee compression and evolving client preferences.

However, investors should keep in mind the growing challenge posed by ongoing net outflows from U.S. active equity products, suggesting…

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 a $677 million earnings increase from $422.9 million today.

Uncover how Invesco's forecasts yield a $26.35 fair value, a 16% upside to its current price.

Exploring Other Perspectives

Three fair value estimates from the Simply Wall St Community range between US$8.14 and US$26.35, reflecting sharply different projections for Invesco’s future. Against this backdrop, sustained margin pressure from client migration to passive products may have broader consequences for long-term profitability, consider the diversity of views as you form your own outlook.

Explore 3 other fair value estimates on Invesco - why the stock might be worth as much as 16% more than 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 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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