Credit Suisse Downgrades Invesco Due To Valuation Concerns

Craig Siegenthaler of Credit Suisse downgraded shares of Invesco Ltd. (NYSE: IVZ) on Tuesday to Neutral from Buy with a $45 price target due to valuation concerns.

Shares of Invesco outperformed the average traditional asset manager by nine percent in 2014, according to Siegenthaler, who notes that the stock is now trading at 14x to 15x 2015 consensus earnings per share estimates. The analyst does state that shares of Invesco could justify trading at a higher premium if it can generate 4 to 6 percent organic growth in 2015,although this may prove to be a difficult task.

However, Siegenthaler is positive on the company's management team given its long-term business strategy and would recommend investors take advantage of any weakness in the stock as an opportunity to become more positive.