Citi Maintains Rating, PT On IVZ

Citi is maintaining its Hold rating and its $24.50 price target on Invesco IVZ in light of the company's May AUM. In the report, Citi writes, “$661.4B in AUM at 5/31, down 1.1% MTM from $668.6B at 4/30 and 50 bps (~$3B) ahead of our $658B forecast. Relative to us, beat reflects better than expected LT AUM ($586.5B vs. $582.3B-E) driven by combo of stronger NAVs + volumes, partially offset by lower than expected money markets ($74.9B vs $75.8B-E) and slightly deeper FX drag (-$2.5B vs -$2.1B-E) – Figure 1. We view the data positively on two fronts. First, stripping away low fee passive impact, estimate positive LT flows, including active equities and a pleasant shift after many periods of net outflows (Figure 2). Second, the data suggest no adverse impact from ongoing U.S. retail fund consolidation (completed this month).” IVZ closed at $23.17 yesterday.