Deutsche Bank Starts Invesco (IVZ) at Hold

Deutsche Bank initiated coverage on Invesco (NYSE: IVZ) with a Hold rating and a price target of $39.00.

Analyst Brian Bedell said, "Over the long term, we see Invesco as especially well positioned vs. peers given mgmt has built a very diversified product range by virtually every measure, a strong global distribution platform, and a reasonably good presence in most of the stronger growth areas in asset mgmt. However, we think the risk of elevated outflows in the near-to-intermediate term, especially in higher fee equity product in Europe, may weigh on the shares and provide a better entry point."

"In addition, while incremental margins are especially high vs. current run rate, we think material margin expansion could be postponed until stronger AuM growth resumes. Key positive longer-term attributes are: 1) good position in many key growth areas (ETFs, global distribution, alternatives, defined contribution), 2) strong investment performance track record & active culture despite sizeable index franchise, 3) good growth position given fairly high mix of equities, and 4) strong longer-term performance fee potential," he added.

For an analyst ratings summary and ratings history on Invesco click here. For more ratings news on Invesco click here.

Shares of Invesco closed at $35.58 yesterday.

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