On Wednesday, TD Cowen maintained its Buy rating on Invesco (NYSE:IVZ), while reducing the share price target to $19.50 from the previous $21.00. The adjustment follows Invesco's first-quarter results and subsequent earnings call, which indicated the company continues to face challenges in achieving significant operating and earnings per share (EPS) leverage despite an increase in assets under management (AUM).
According to the firm's analysis, the anticipated easing of headwinds should improve Invesco's outlook in the second half of 2024 and into 2025. Nonetheless, the firm has revised its earnings estimate for 2024 downward by approximately 10% to $1.53, compared to the previous estimate of $1.70. This revision is attributed to the company's performance in the first quarter, initially reported on February 23, and greater than expected distribution margin compression.
For the year 2025, the firm has also slightly decreased its EPS forecast by $0.04 to $1.94. The new 12-month price target represents a $1.50 reduction from the prior target, now set at $19.50. This adjustment reflects the firm's recalibrated expectations for Invesco's financial performance in the coming periods.
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