Invesco (IVZ) is set for a strong Q2 despite competitive pressure on its flagship QQQ product, RBC Capital Markets said in a Thursday note.

RBC raised its 2026 EPS estimate to $2.62 from $2.54, projecting $46 billion in long-term net inflows for the quarter at 8% to 9% annualized organic growth.

While State Street recently launched a lower-fee competing product, RBC said QQQ's liquidity, brand recognition and deep options market give it durable advantages.

RBC analysts also noted the company's own lower-fee QQQM launch in 2020 did not cannibalize QQQ growth.

RBC maintained its outperform rating and $31 price target.