VCTR - BMO maintains Victory Capital at Outperform as valuation discount is 'unwarranted'

2023-07-10 11:16:27 ET

• Victory Capital's ( NASDAQ: VCTR ) current valuation discount is unwarranted, BMO Capital Markets said, reiterating its Outperform rating.
• "We believe VCTR's discounted valuation is disconnected from earnings potential and capital deployment optionality," said analyst Étienne Ricard, assuming coverage from James Fotheringham. "We value management's track record in diversifying AUM, maintaining fee rates/margins, and pursuing acquisitions."
• Ricard said potential catalysts include a return to positive net flows, deployment of capital for targeted acquisitions, and continued private equity sell-down.
• Price target was raised to $46 from $39, implying 45% potential upside to VCTR's last close.
• Shares of Victory Capital ( VCTR ), which climbed 21% YTD, rose 3.6% in morning trade on Monday.
• BMO's stance is in line with bullish sell-side and SA Quant ratings .
• Now read - Take A Victory Lap With Victory Capital

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