What Happened?
Shares of asset management firm Invesco (NYSE:IVZ) jumped 3.9% in the afternoon session after RBC Capital upgraded the company from a 'Sector Perform' to an 'Outperform' rating and increased its price target on the shares.
The firm pointed to an improved outlook for organic growth and the possibility for margin expansion to 37%-38% in 2026/2027. According to the analyst, potential earnings growth from the recent re-classification of its QQQ ETF was also a key factor in the decision. RBC Capital raised its price target for Invesco to $35.00 from $25.00, representing a 40% increase and reflecting renewed confidence in the company's market potential. The upgrade was consistent with a wider trend of positive analyst sentiment, as the average 12-month price target for the stock had already risen over the previous three months.
After the initial pop the shares cooled down to $29.10, up 4.2% from previous close.
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What Is The Market Telling Us
Invesco’s shares are somewhat volatile and have had 12 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 6 days ago when the stock gained 3.5% on the news that Barclays raised its price target on the stock and the company announced a major transaction for its Canadian fund business.
The investment bank adjusted its price target on Invesco to $30 from $28, while it maintained an Equalweight rating on the shares. Separately, the Atlanta-based asset manager reached an agreement to reshape its Canadian operations. Invesco arranged for CI Global Asset Management to take over management of its Canadian fund business, which had approximately C$26 billion in assets. The transaction allowed Invesco to step back from directly running its funds in Canada, changing its footprint in the country while its investment teams remained involved through a partnership.
Invesco is up 8% since the beginning of the year, and at $29.10 per share, it is trading close to its 52-week high of $29.44 from January 2026. Investors who bought $1,000 worth of Invesco’s shares 5 years ago would now be looking at an investment worth $1,392.
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