- Credit Suisse analyst Bill Katz downgraded Invesco ( NYSE: IVZ ) to Underperform from Neutral on Wednesday as he sees "too many adverse moving parts that will likely sustain deeper EPS pressure than consensus currently bakes in, with limited expense and capital return flex offsets."
- Invesco ( IVZ ) stock slipped 1.3% in early Wednesday trading.
- Invesco ( IVZ ) Q3 adjusted EPS , reported on Tuesday, missed the consensus estimate as net long-term outflows increased during the quarter and assets under management dropped.
- Katz lowered his 2022-2024 adjusted EPS estimates to reflect the Q3 shortfall, lower base fee rates, reduced fee contribution, and tighter margins that were partly offset by quarter-to-date market action and higher fixed income net new assets. His EPS estimate is $1.60 for 2022, down from $1.74; $1.44 for 2023 vs. $1.61; and $1.67 for 2024, down from $1.76.
- The Underweight rating contrasts with SA's Quant rating of Hold and the average Wall Street rating of Hold .
- Take a look at the trajectory for IVZ's consensus revisions here.
For further details see:
Invesco cut to Underperform at Credit Suisse after mixed Q3 results