Invesco's (IVZ) organic growth inflection is real and its growth prospects are being underestimated by the market, UBS analysts said in a note emailed Wednesday.
While consensus forecasts organic growth of 5.1% and 4.6% organic growth in fiscal 2027 and fiscal 2028, respectively, UBS expects sustainable 5% to 6% growth, according to the note.
The company's growth will be supported by double-digit ETF and Index growth, QQQ strength, China joint venture growth, and moderating active equity outflows, analysts said.
UBS said that Invesco's growth improvement is structural, driven by ETF investments, personalized solutions, international distribution, as well as portfolio modernization.
Analysts said that the market is overestimating Invesco's potential market share loss and the fundamental impact to earnings from cheaper ETF alternatives.
UBS assumed coverage of Invesco with a buy rating and $41 price target.
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