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On Tuesday, Morgan Stanley (NYSE:MS) adjusted its outlook for Victory Capital Holdings, Inc. (NASDAQ: NASDAQ:VCTR), increasing the firm’s price target from $63.00 to $68.00. The investment bank maintained its Equalweight rating on the asset management company’s stock. According to InvestingPro analysis, VCTR appears undervalued based on its Fair Value metrics, with the stock showing an impressive 96% return over the past year.
The adjustment follows Victory Capital’s first-quarter earnings for 2025, which showed a slight increase in earnings per share (EPS) to $1.39, up from $1.37 previously. The analyst at Morgan Stanley noted the improvement, attributing the rise to more efficient operating expenses. The company maintains strong fundamentals with a perfect Piotroski Score of 9, as reported by InvestingPro, which offers 8 additional key insights about VCTR’s performance.
Looking ahead, Morgan Stanley also revised its adjusted EPS forecast for Victory Capital for the year 2025, raising it by 2.5% to $6.12. The positive revision was influenced by the company’s better-than-expected management of operating expenses.
Moreover, the forecast for the year 2026 was also modified, with the adjusted EPS projection growing by 1.9% to $6.86. This increase is anticipated due to the company’s effective share buybacks and a resulting lower share count, which typically can enhance EPS by distributing earnings over fewer shares.
The new price target represents an 8% increase from the previous target, signaling Morgan Stanley’s expectation of Victory Capital’s stock potential. Despite the raised price target, the firm’s stance remains at Equalweight, indicating a view that the stock should perform in line with the expectations for the market or sector.
In other recent news, Victory Capital Holdings has been the subject of multiple analyst upgrades. BMO Capital Markets raised their price target for Victory Capital to $82, citing a positive outlook for the company’s 2025 performance. This optimism is fueled by the strategic and financial benefits expected from the upcoming acquisition of Amundi U.S., positive net flows, and Victory Capital’s consistent execution in expanding margins.
Similarly, Barclays (LON:BARC) analyst Benjamin Budish adjusted the price target for Victory Capital to $75, following an earnings beat with adjusted earnings per share (EPS) of $1.45, surpassing the consensus estimate by approximately 7%. The company’s management fees exceeded expectations due to higher average assets under management (AUM), contributing to this earnings beat.
Further, BMO Capital Markets updated its outlook on Victory Capital, raising the price target to $71. The firm highlighted several potential growth drivers, including anticipated improvements in net flows and revenue synergies from its partnership with Amundi, and the possibility of resumed stock buybacks.
These recent developments underscore the analysts’ confidence in Victory Capital’s strategic initiatives and potential for shareholder value creation over the next few years. Investors are likely to watch closely as Victory Capital integrates the Amundi U.S. acquisition and capitalizes on these opportunities.
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