Invesco shares rise as analysts reaffirm positive views
NEW YORK—Shares of investment manager Invesco Ltd. rose Monday as an analyst reiterated his "Strong Buy" rating and another said the company matches up favorably against competitors.
Invesco shares rose $1.35, or 5.5 percent, to close at $25.83. Shares have traded between $19.78 and $32.25 during the past year.
Buckingham Research Group analyst William Katz reiterated his "Strong Buy" rating on the company and set a 12-month price target of $35, saying the stock remains a "top pick."
Katz maintained the positive outlook on the stock because the investment manager has above-average leverage and improving net flows, he wrote in a research note.
Katz affirmed his 2008 earnings-per-share estimate of $1.79 and 2009 estimate of $2.35.
Analysts polled by Thomson Financial, on average, forecast earnings per share of $1.71 for 2008 and $2.06 for 2009.
William Blair & Co. analyst D.J. Neiman wrote in a research note that Invesco stacks up well against competitors such as T. Rowe Price Group Inc. and Franklin Resources Inc.
"We view Invesco as a good alternative to T. Rowe Price for more valuation-sensitive investors," Neiman wrote in the note. "In addition, we currently prefer Invesco over Franklin Resources Inc. given some underperformance issues at (Franklin Resources) that have contributed to accelerating outflows."
Neiman reiterated an "Outperform" rating for Invesco but did reduce his 2008 earnings estimate for the company to $1.70 per share from $1.80 per share because of a potential drop in fees tied to a shift in product mix.
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