Invesco Sees Upgrade and Price Target Hike to $25 Amid Strong Earnings

Invesco (IVZ) has been upgraded to Buy by TD Cowen, with a price target of $25, up from $17.50. The average analyst target price is $17.25, indicating a 13.4% downside from the current price. IVZ reported $17.6 billion in long-term net asset inflows, a 5.3% annualized growth rate, and an 18% increase in adjusted operating income.

Invesco (IVZ) has experienced a significant positive shift as TD Cowen elevated its rating from Hold to Buy, with a new price target of $25, up from $17.50. This upgrade reflects growing confidence in the company's potential and strategies moving forward. The average analyst target price is $17.25, indicating a 13.4% downside from the current price of $19.92 [1].

IVZ reported $17.6 billion in long-term net asset inflows, representing a 5.3% annualized growth rate, and an 18% increase in adjusted operating income. The company's operating margins expanded by over 330 basis points compared to the same quarter last year, and assets under management (AUM) totaled $1.84 trillion at the end of the quarter [1].

Invesco's stock surged 12% on Friday following the company's filing of a proxy statement to convert its QQQ Trust Series 1 into an open-ended fund. The QQQ, currently the most profitable ETF in the $11.7 trillion ETF industry, will continue to be managed by Invesco and will retain its actively managed status. The conversion will provide more flexibility for investors and allow Invesco to retain more of the fund's revenue [2].

The proposed conversion is set to be voted on at a special meeting on October 24, 2025. If approved, Invesco will lower QQQ's expense ratio by two basis points to 0.18%. Analysts have responded positively to the news, with GuruFocus estimating the GF Value for Invesco Ltd. (IVZ) to be $12.47 over the next year, indicating a potential downside of 35.69% from the current price of $19.39 [2].

The conversion of QQQ Trust Series 1 to an open-ended fund is seen as a strategic move that could benefit both Invesco and its investors. It provides more flexibility for the fund's management and could lead to increased revenue for the company. The restructuring could also justify a re-rating of Invesco's stock, potentially aligning it with the 18–20 range typical of higher-growth asset managers [3].

References:
[1] https://www.gurufocus.com/news/2989114/invesco-ivz-sees-upgrade-and-increased-price-target-ivz-stock-news
[2] https://www.ainvest.com/news/invesco-stock-surges-12-filing-convert-qqq-trust-series-1-open-fund-2507/
[3] https://www.ainvest.com/news/invesco-14-weekly-surge-qqq-etf-restructuring-opportunity-strategic-shift-long-term-earnings-growth-2507/