Invesco Stock Rating Upgraded to 'Buy' by TD Cowen

Invesco (IVZ) stock rating upgraded to "Buy" by TD Cowen, with a new price target of $25.00, a 42.86% increase from the previous target of $17.50. Analyst Bill Katz elevated the stock rating from "Hold" to "Buy", signaling a more optimistic outlook for the company's future performance. The average target price for Invesco Ltd is $17.88, with a high estimate of $25.00 and a low estimate of $16.00.

Invesco (IVZ) has received a significant boost from TD Cowen, with the investment research firm upgrading the stock to "Buy" and raising its price target to $25.00. This marks a substantial increase from the previous target of $17.50, representing a potential 42.86% upside [1].

The upgrade comes on the heels of Invesco's recent Securities and Exchange Commission (SEC) filing, which revealed the company's plans to restructure its Invesco QQQ Trust (QQQ) to reflect an open-ended fund rather than a unit investment trust (UIT). The QQQ, a widely held fund tracking the Nasdaq-100 index, has approximately $355 billion in assets. This proposed change could allow Invesco to capture a larger share of fee revenue from the ETF, potentially benefiting both the company and its stakeholders [2].

Analyst Bill Katz at TD Cowen highlighted the significance of this development, noting that the stock jumped by around 15% on Friday following the news. Katz expects further upside potential post the second-quarter earnings report, scheduled for July 22nd. The analyst also pointed out that the move could result in a decrease in the fund's expense ratio if the proposed changes are approved, further enhancing Invesco's profitability [2].

Currently, Invesco has an average target price of $17.88, with a high estimate of $25.00 and a low estimate of $16.00, based on the consensus of 15 analysts [3]. While the majority of analysts maintain a "Hold" rating for IVZ, the single "Buy" rating from TD Cowen indicates a more optimistic outlook for the company's future performance.

Invesco's stock has shown resilience, with a year-to-date increase of 14%. The company's latest quarterly earnings report, released on April 22nd, demonstrated strong financial performance, with earnings per share (EPS) of $0.44, beating the consensus estimate by $0.05. The company reported a net margin of 13.14% and a return on equity of 8.94%, underscoring its robust financial health [1].

Institutional investors have also shown interest in Invesco, with several major funds boosting their stakes in the company. For instance, Federated Hermes Inc. increased its holding by 186.6% during the first quarter, while SVB Wealth LLC and Colonial Trust Co. SC also made significant purchases [1].

In conclusion, Invesco's recent upgrade by TD Cowen, coupled with its strong financial performance and institutional investor interest, presents a compelling case for investors to consider. The proposed restructuring of the Invesco QQQ Trust could further enhance the company's profitability, potentially driving additional growth and value for shareholders.

References:
[1] https://www.marketbeat.com/instant-alerts/invesco-nyseivz-upgraded-at-td-cowen-2025-07-21/
[2] https://www.cnbc.com/2025/07/21/this-investment-manager-can-soar-on-proposed-change-to-widely-followed-fund-says-td-cowen.html
[3] https://www.marketbeat.com/stocks/NYSE/IVZ/forecast/