Wells Fargo upgrades Invesco to Equal Weight on improved risk profile and revenue outlook.

Wells Fargo upgraded Invesco to Equal Weight from Underweight with a price target of $18, citing an improved risk profile and better revenue outlook. The firm sees margin expansion potential driven by equity markets and expense discipline, despite high leverage.

Wells Fargo (NYSE:WFC) has upgraded Invesco (NYSE:IVZ) from Underweight to Equal Weight, raising the price target to $18.00 from $14.50. The upgrade reflects an improved risk profile for the asset management firm, with Wells Fargo noting a slowing pace of fee-rate pressure and better revenue outlook. The firm cited margin expansion potential driven by equity markets and expense discipline, despite high leverage [3].

The upgrade comes on the heels of impressive earnings for Invesco in Q1 2025, with earnings per share (EPS) of $0.44, surpassing the projected $0.40. The company’s revenue reached $1.53 billion, exceeding expectations by $420 million. Invesco also announced a 3% increase in assets under management (AUM), totaling $2 trillion as of June 30. Additionally, the firm is set to leverage platforms from State Street (NYSE:STT) and Blackrock (NYSE:BLK) to enhance its investment platform capabilities and announced a strategic partnership with MassMutual and Barings to expand its private market offerings [3].

Despite the upgrade, Wells Fargo indicated that valuation upside for Invesco remains limited, with the new $18 price target representing 9 times the firm’s 2026 estimated earnings per share. The firm acknowledged that Invesco’s leverage remains high but is trending lower, which contributes to the more balanced stance on the stock [3].

References:
[1] https://in.investing.com/news/stock-market-news/kla-corporation-wells-fargo-struggles-to-see-upside-drivers-for-2026-estimates-4904255
[2] https://seekingalpha.com/news/4466883-pure-storages-design-win-with-meta-might-lead-to-catalyst-wells-fargo
[3] https://www.investing.com/news/analyst-ratings/invesco-stock-rating-upgraded-by-wells-fargo-on-improved-risk-profile-93CH-4131757
[4] https://ca.finance.yahoo.com/news/wells-fargo-downgrades-kla-corporation-032605885.html