A Fresh Look at Victory Capital (VCTR) Valuation After Amundi US Acquisition and Investor Interest

Victory Capital Holdings (VCTR) is back in the spotlight after Merion Road Capital Management re-initiated its stake, following the company’s acquisition of Amundi US. The deal increases assets under management and highlights new cross-selling possibilities for Victory Capital.

See our latest analysis for Victory Capital Holdings.

Victory Capital’s recent moves have sparked interest, but the stock’s share price has edged lower, with a year-to-date decline of 4.2%. While momentum has cooled in the short term, its impressive three- and five-year total shareholder returns of 140% and 235% point to strong long-term value creation and resilience despite recent volatility.

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With the company trading below consensus analyst price targets and projecting robust free cash flow, investors now face a key question: is Victory Capital undervalued, or is the market already factoring in its future growth?

Most Popular Narrative: 14.7% Undervalued

With Victory Capital Holdings’ latest close of $63.09 still trailing what the most-followed narrative deems fair value, the possibility of a market mispricing lingers. The narrative pegs a fair value at $74 per share, reflecting a significant discount against current levels and setting up a debate around forward assumptions.

The global partnership and integration with Amundi and the acquisition of Pioneer Investments allow Victory Capital to access an extensive international distribution network across Europe and Asia. This significantly expands their addressable client base beyond the U.S., positioning the company for higher long-term asset inflows and revenue growth.

Read the complete narrative.

What big numbers are fueling this optimistic pricing model? Insiders are focusing on a major international push and a bolder profit outlook. The secret sauce is an earnings upgrade based on aggressive growth forecasts, margin expansion, and a valuation target that hints at an industry shake-up. Curious how they added it all up? See which future milestones could move the market.

Result: Fair Value of $74 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing net outflows and the challenges of integrating recent acquisitions remain key risks that could pressure Victory Capital's earnings outlook.

Find out about the key risks to this Victory Capital Holdings narrative.

Build Your Own Victory Capital Holdings Narrative

If you’re keen to dig into the numbers firsthand or want to chart a different course, it takes just minutes to shape your own perspective. Do it your way

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Victory Capital Holdings.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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