Invesco (IVZ) Stock Forecast & Price Target

Invesco's assets under management amounted to $1.840 trillion as of April 2025, with a diversified mix that includes 57% in equity, 22% in fixed income, and 43% in passive products, positioning the firm well within various asset classes. The company has demonstrated strong operational efficiency, reporting better-than-expected adjusted net revenues and margins, supported by lower general and administrative expenses, which were positively impacted by a one-time insurance reimbursement. Furthermore, Invesco's focus on expanding its wealth management services and its significant presence in international markets, with 30% of AUM sourced from Europe, Africa, the Middle East, and Asia, indicates a stable long-term growth trajectory.

Invesco's management fee rate of 27.2 basis points fell slightly below expectations, coupled with a decline in the net revenue yield from 24.6 basis points in 4Q24 to an estimated 23.9 basis points for 1Q25. The firm experienced a negative return on fixed income investments, amounting to -1.3% quarter-over-quarter, which, combined with a mix shift in asset allocation, reflects challenges in maintaining revenue performance. Additionally, significant risks from financial market fluctuations and foreign exchange impacts further exacerbate the firm's vulnerabilities to its overall financial condition and earnings.