Morgan Stanley Sees Positive Operating Leverage For Invesco Ltd.
In a report published Wednesday, Morgan Stanley analyst Betsy L. Graseck reiterated an Equal-Weight rating and $39.00 price target on Invesco Ltd. (NYSE: IVZ).
In the report, Morgan Stanley noted, “While we view IVZ as a global, diversified platform that is likely to generate organic growth above most peers, we remain Equal-weight and view consistently strong positive operating leverage as the most significant positive catalyst going fwd.
"Our forecast calls for stronger margin expansion & EPS growth than most peers, but we remain Equal-weight & believe investors will price IVZ at a discount until it consistently shows these combined factors. We estimate ~$26B outflows through YE2014 related to recent PM departure at Perpetual, although less could signal upside vs our estimates.”
Invesco Ltd. closed on Tuesday at $37.97.
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