Stock Price & Analysis

Analysis and Insights

Technical Analysis:

Invesco's stock (IVZ) is currently trading at $15.4, with a Fibonacci pivot of $15.55. The Relative Strength Index (RSI) for IVZ is 41.67 (RSI_6) and 36.19 (RSI_12), indicating a bearish trend. The MACD is negative, suggesting downward momentum, and the Stochastic Oscillator is in the bearish zone. Bollinger Bands show the stock near the lower end, signaling potential overselling.

Fundamental Analysis:

IVZ's revenue has shown consistent growth, but net income has been volatile, with a significant drop in Q3 2024. The company has no debt, which is positive, but the current ratio is zero, indicating potential liquidity concerns. Analysts have mixed opinions, with a consensus Hold rating and a price target of $19.82, suggesting upside potential.

Analyst Sentiment:

Analysts maintain a Hold rating, with some lowering price targets due to challenges like declining AUM and fee rates. Despite this, the average price target remains higher than the current price.

Conclusion:

While IVZ shows potential upside based on analyst targets, the bearish technical indicators and volatile net income suggest caution. It may be wise to wait for more stable performance or positive news before buying. Selling could be considered if the stock approaches resistance without strong fundamentals.

Invesco (IVZ) is expected to reach a price target of $20 by the end of 2025. Analysts cite improving operating margins and rising net flows as key drivers, with a consensus price target of $19.82 suggesting a 27% upside from current levels. The stock faces challenges like AUM pressure but shows strong earnings growth.

The S1 support level for IVZ Stock is $14.84 ,The R1 resistant level for IVZ Stock is $15.85.

As of the end of day on 2025-03-24, the price of IVZ Stock was $15.88.

The target price for IVZ Stock according to analyst rating is 19.95, with the highest price target at 22.00 and the lowest at 18.00. Analysts have a Hold rating on IVZ Stock overall.

The market cap of IVZ is $7.1B.

Analysis and Insights

To determine whether Invesco Ltd (IVZ) is overvalued, we analyze its valuation metrics, financial performance, and market sentiment.

Valuation Metrics:

• Price-to-Earnings (P/E) Ratio: IVZ's P/E ratio is 14.87 for Q4 2024, which is reasonable compared to industry peers.
• EV/EBITDA: The EV/EBITDA ratio is 18.89, indicating a premium valuation relative to earnings.
• Price-to-Sales (P/S) Ratio: The P/S ratio is 1.97, suggesting moderate valuation.
• Price-to-Book (P/B) Ratio: The P/B ratio is 0.54, indicating undervaluation relative to book value.

Financial Performance:

• Revenue Growth: Total revenue has been increasing steadily, reaching $1.066 billion in Q4 2024.
• Net Income Volatility: Net income has been inconsistent, with a significant drop in Q3 2024 to $55 million.
• Gross Margin: The gross margin is 22.05%, which is lower than some industry peers, indicating pressure on profitability.

Analyst Sentiment:

• Consensus Rating: The analyst consensus is Hold, with price targets ranging from $17 to $22.
• Dividend Yield: The dividend yield is 4.66%, providing some income appeal.

Technical Analysis:

• RSI: The RSI is 36.32, indicating potential undervaluation.
• Fibonacci Levels: The stock is near Fibonacci support levels, suggesting possible oversold conditions.

Conclusion:

While IVZ shows some attractive metrics like a moderate P/E ratio and a strong dividend yield, the high EV/EBITDA ratio and inconsistent net income suggest it may be overvalued. Investors should exercise caution and consider waiting for more stable profitability before investing.

Invesco Ltd. is an independent investment management firm. It serves the retail and institutional markets within the investment management industry in the Americas, Europe, Middle East, and Africa and Asia-Pacific in 120 countries. It offers a range of investment strategies across asset classes, investment styles, and geographies. Its asset classes include equity, fixed income, balanced, alternatives and money market. Its retail assets under management include mutual funds, exchange-traded funds, separately managed accounts, individual savings accounts, investment companies with variable capital, investment trusts, open-end mutual funds, unit investment trusts, and variable insurance funds. Its institutional assets include institutional separate accounts, private funds, open-end mutual funds, and collective trust funds. Its client base includes public and private entities, unions, non-profit organizations, endowments, foundations, financial institutions, and sovereign wealth funds.

Invesco (IVZ) stock is predicted to reach $25-$30 by 2030, driven by strong AUM growth and improved operating margins. Analysts expect sustained upside due to positive fundamentals and industry tailwinds.

IVZ has a total of 8489 employees.