UPDATE: Wells Fargo Securities Upgrades Invesco as Fundamentals Have Become Disconnected from Valuation

In a report published Monday, Wells Fargo Securities analyst Christopher Harris upgraded the rating on Invesco IVZ from Market Perform to Outperform. In the report, Wells Fargo Securities noted, “Upgrading IVZ to Outperform from Market Perform as we believe fundamentals have become disconnected with valuation. IVZ has not been without its share of controversies (margins, IBRA, Woodford) but we see concerns with the stock ebbing as core fundamentals are strong and blowback from Woodford is likely manageable. With a stock that has lagged peers, we think the set-up looks very good particularly given the retail rotation toward high beta. We up our 2014E/2015E EPS modestly to $2.44/$2.80 from $2.42/$2.75 on a higher buyback assumption. We also raise our range to $38-42 from $33-37 as we now believe a multiple closer to the group average (16x on 2014E) is sensible.” Invesco closed on Friday at $33.32.
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Posted In: Analyst ColorUpgradesAnalyst RatingsChristopher HarrisWells Fargo Securities
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