In a report published Friday, Deutsche Bank analyst Brian Bedell upgraded the rating on Invesco Ltd. (NYSE: IVZ) from Hold to Buy, and raised the price target from $39.00 to $43.00.
In the report, Deutsche Bank noted, “Reasons of upgrade: 1) we see risk of major outflows from former PM's UK equity funds as significantly reduced following only modest outflows in 2Q & very strong performance of successor PM in ~$37bn of retail assets, 2) organic growth rates are improving across several products & we see inflection to 3%+ into 2015, 3) a sales mix shift toward higher-fee products appears sustainable, 4) IVZ is well positioned in several secular growth areas of asset mgmt, 5) we see these catalysts driving IVZ's P/E close to the S&P 500 vs. 5-10% recent discount, & 6) EPS growth profile looks better after solid 2Q & better growth outlook.”
Invesco Ltd. closed on Thursday at $37.63.
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