UPDATE: Citigroup Lowers PT to $27 on Invesco on Sluggish Flows
Citigroup reiterates its Buy rating on Invesco (NYSE: IVZ) but reduces its price target from $28.50 to $27.
Citigroup says, "We estimate net LT outflows between $2B to $2.5B (4% annualized loss rate) with ~$1B LT active outflows (3% annualized loss rate), and ~$1B LT passive outflows (11% annualized loss rate) [Figure 2]. Money market outflows were ~$2.7B (44% annualized loss rate). That said, LT attrition was skewed by $900M QQQ outflows and a $1B Stable Value redemption, suggesting “core” LT outflows only modestly negative, though still sluggish, in our view, while posing less EPS drag as lower fee products. By asset class, we estimate total equities outflows were ~$2.8B (~11% annualized loss rate) and we range total fixed income flows between flat to modestly negative."
IVZ closed at $22.35 yesterday.
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