Invesco reported first-quarter revenue of $1.26 billion, a 14% increase year on year, with assets under management and earnings per share in line with expectations. The stock rose 6.1% to around $27.04 following the results. Based on a narrative fair value of $29.32 versus a last close of $27.83, Invesco is framed as modestly undervalued, with the gap tied to a mix of earnings recovery and capital return. A proposed modernization of the QQQ fund structure from a unit investment trust to an open-end ETF is expected to improve net revenue and earnings by approximately 4 basis points. The stock has returned 72.28% over the past year, though it faces pressure from weaker net revenue yield and rising competition in ETFs and active equity.
Invesco PlcRevenue up 14%, earnings in line, stock seen as modestly undervalued with fair value above current price.