Virtus Investment maintained at Overweight rating after AUM update

Published 21/01/2025, 14:30
Virtus Investment maintained at Overweight rating after AUM update

On Tuesday, Piper Sandler adjusted its outlook for Virtus Investment Partners (NYSE:VRTS), reducing the price target to $258 from $274, while maintaining an Overweight rating on the company's shares.

The revision follows a detailed review of the asset manager's updated assets under management (AUM) and a market valuation as of January 14. The firm's analysis led to a recalibration of earnings projections and price expectations for Virtus Investment Partners.

The firm's analysts noted a decrease in the adjusted earnings per share (EPS) estimate for the fourth quarter of 2024, now set at $7.26, down from the previous $7.37 forecast.

The adjustment was attributed to the December AUM release and the mark to market through mid-January. Furthermore, the estimated earnings for the years 2025 and 2026 were also revised downward by approximately 6%, to $27.92 and $29.87 respectively, from the earlier projections of $29.79 and $31.85.

This revision in estimates is primarily due to the impact of the market-to-market (MTM) valuation and a reduced average AUM, which saw a significant institutional outflow of $3.3 billion in December.

The new price target of $258 is based on approximately 6 times the firm's estimated enterprise value to adjusted EBITDA for the year 2025, a multiple that remains unchanged from the previous valuation methodology.

Virtus Investment Partners is expected to release its earnings for the fourth quarter of 2024 before the market opens on January 31. The upcoming earnings report will provide further insight into the company's financial performance and may influence future assessments of its stock value.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.