10:45 AM EDT, 04/23/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We trim our 12-month target by $2 to $16, valuing IVZ shares at 8.6x our 2025 adjusted EPS estimate of $1.85 (cut today by $0.05) and at 10x our 2024 EPS estimate of $1.60 (cut by $0.10), versus the three-year average forward multiple of 9x and the closest peer average of 11.5x. Q1 adjusted EPS of $0.33 versus $0.38 lagged our $0.43 EPS estimate and the $0.40 consensus forecast on 4% higher GAAP revenues (versus our 3%-6% growth forecast), offset by 9.3% lower operating profits amid margin pressures from the ongoing secular shift to lower fee-generating passive investments. Q1 inflows of $16.5B (versus $9B a year ago) reflect $13.4B passive inflows, $7.1B in active outflows, and flows of around $10B into low or non-fee earning assets. IVZ has been streamlining to offset this pressure, and we see adjusted operating margins of 28%-32% in 2024, stable from a year ago. We think secular challenges remove a catalyst from the shares, but would hold for the 5.5% yield and potential future restructuring or activism.