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

. 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.