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Investing.com - Goldman Sachs raised its price target on Victory Capital Holdings, Inc. (NASDAQ:VCTR) to $76.00 from $67.75 while maintaining a Buy rating following the company’s second-quarter 2025 results. The stock, currently trading near its 52-week high of $73.42, appears slightly undervalued according to InvestingPro’s Fair Value analysis.
Victory Capital reported adjusted earnings per share of $1.57 for the second quarter, which was 1% lower than Goldman Sachs’ estimates but 6% above consensus data from Visible Alpha. The results were supported by slightly higher assets under management, better-than-expected management fee rates, and stronger non-operating income. The company maintains robust financials with a healthy current ratio of 2.07 and impressive revenue growth of 20.9% over the last twelve months. InvestingPro subscribers can access 8 additional key insights about VCTR’s financial health.
The company’s organic growth trends have continued to improve, with long-term annualized organic growth at -1.6% compared to -2.8% in the first quarter and -6.5% in 2024. Management expressed optimism that their product offerings will support positive flows in the business.
Goldman Sachs remains bullish on Victory Capital stock based on three factors: improving organic growth profile, commitment to deliver 49% EBITDA margin with potential upside, and balance sheet strength with a leverage ratio of 1.2x to pursue both inorganic expansion and return capital to shareholders.
Following the quarterly results, Goldman Sachs adjusted its 2024/2025/2026 earnings estimates to $6.32/$7.23/$7.99 from the previous $6.32/$7.19/$8.07.
In other recent news, Victory Capital Holdings Inc . announced its second-quarter earnings for 2025, revealing a mixed financial performance. The company reported earnings per share (EPS) of $1.57, which exceeded analysts’ expectations of $1.47, resulting in a 6.8% positive surprise. Despite this earnings beat, Victory Capital’s revenue fell short of projections, coming in at $301.6 million compared to the anticipated $344.76 million, marking a 12.52% shortfall. This revenue miss highlights a challenging period for the company in terms of sales, even as it managed to control costs effectively to boost its EPS. These developments have been closely watched by investors and analysts alike.
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