Goldman Sachs Reiterates Buy Rating on Invesco (IVZ)

Goldman Sachs is out with an investor note this morning, where they reiterate their Buy rating on shares of Invesco LTD IVZ; they have a $24 price target on the stock. GS analysts said, “We are reinstating our view on IVZ with a Buy rating and a $24 12-month P/E based price target, which implies 25% upside from current levels. We view IVZ as one of the best balanced managers across products and geographies, with the recent Van Kampen/Morgan Stanley retail asset management business meaningfully enhancing IVZ’s operating leverage and extending its distribution reach. Our 2010/2011/2012 EPS estimates are $1.21/$1.57/$1.80 up from $1.15/$1.34/$1.53, reflective of expected Van Kampen deal synergies. Key risks: integration of Van Kampen, foreign currency risk.” They said their Buy rating reflects four key points: 1. IVZ’s deal with Van Kampen offers margin upside, supporting a relatively stronger earnings growth profile 2. We see the competitive distribution advantage via the MSSB partnership 3. Compelling diversified product, client, and geographic mix 4. Attractive valuation