Victory Capital stock target raised to $82 at BMO Capital

On Monday, BMO Capital Markets increased the price target for Victory Capital Holdings, Inc. (NASDAQ:VCTR) to $82.00 from $73.00, while maintaining an Outperform rating on the stock. The adjustment follows a positive assessment of the company’s prospects for the year 2025. According to InvestingPro analysis, the stock appears undervalued, with a perfect Piotroski Score of 9 and an impressive 98% return over the past year.

The analyst at BMO Capital Markets expressed a highly constructive view on Victory Capital’s 2025 outlook. This optimism is based on several key factors, including the strategic and financial benefits expected from the upcoming acquisition of Amundi U.S. Additionally, the firm has observed net flows turning positive and has recognized Victory Capital’s consistent execution in expanding margins. The company’s strong financial health is reflected in its GREAT overall score from InvestingPro, with robust revenue growth of 8.8% and a healthy gross profit margin of 59%.

The analyst’s confidence is further bolstered by the company’s potential for increased capital deployment in mergers and acquisitions (M&A) and shareholder distributions. This comprehensive analysis suggests that Victory Capital is well-positioned for future growth and profitability.

Victory Capital’s stock price target increase reflects the firm’s anticipation of continued success. BMO Capital Markets underscores the stock as their top pick, backed by an estimated valuation of approximately 10 times adjusted earnings.

Investors and market watchers will likely keep a close eye on Victory Capital’s performance, especially as the company integrates the Amundi U.S. acquisition and seeks to capitalize on the opportunities outlined by BMO Capital Markets.

In other recent news, Victory Capital has been the recipient of positive analyst attention. Barclays (LON:BARC) increased its price target for Victory Capital to $75, maintaining an Equalweight rating. This followed the company’s reported adjusted earnings per share of $1.45, surpassing consensus estimates by approximately 7%. The company’s management fees exceeded expectations due to higher average assets under management (AUM), contributing to the earnings beat.

Similarly, BMO Capital Markets raised its price target for Victory Capital to $71 from $69, while maintaining an Outperform rating. The firm cited several potential growth drivers, including anticipated improvements in net flows and revenue synergies from its partnership with Amundi.

Victory Capital also reported exceeding forecasts on adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by around 3%, amounting to approximately $126 million. The company’s management reported a slight increase in January flows, despite experiencing another quarter of net outflows.

In addition to the aforementioned developments, Victory Capital has reaffirmed its expectation of achieving $100 million in expense synergies from the pending acquisition of Amundi. The company has also announced a 7% increase in its quarterly dividend and authorized a new $200 million share repurchase program.

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