UPDATE: Citigroup Raises PT on Invesco Ltd. on Multiple Positive Drivers Ahead

In a report published Friday, Citigroup analyst William R. Katz reiterated a Buy rating on

, and raised the price target from $40.00 to $41.00. In the report, Citigroup noted, “We affirm our Buy rating, raise our target $1 to $41, and add IVZ to the US Focus list following favorable September AUM disclosure. We see several favorable ST & LT drivers around: 1) expect more decisive 3Q13 EPS beat as 3Q average AUM nicely ahead of prior forecast; 2) expect a constructive post 3Q call, with management likely to reiterate 60%+ incremental margins; 3) expect consensus estimates for 2014-15 (too high last year) to rise sharply - we see $3+ EPS power in 2015; and, 4) we see a catch up trade given below average P/E multiple but improving flow metrics as the stock has lagged since May (Fed tapering commentary). We see IVZ as a more actionable story than FXCM as pushed out tapering likely mutes the volume story for FXCM, to some degree, and IVZ continues to gain flow share versus peers, in our view. We estimate $3.5B to $4B in LT net inflows (7% annualized organic growth rate) in September. We are encouraged around the solid organic growth as we believe non-U.S. is likely a solid contributor (particularly traction in Europe) and volumes are biased toward high(er) fee products.” Invesco Ltd. closed on Thursday at $33.92.