How Investors Are Reacting To Victory Capital Holdings (VCTR) Analyst Upgrade Amid Net Outflows and AUM Update

• Victory Capital Holdings, Inc. recently reported total assets under management of US$310.6 billion as of September 30, 2025, alongside US$244 million in long-term AUM net outflows for the third quarter, and scheduled its third-quarter financial results release for November 6 and earnings call for November 7.
• An interesting development is the company's upgrade to a Zacks Rank #1 (Strong Buy) due to substantial analyst optimism about its earnings outlook, placing it among the top 5% of Zacks-covered stocks for estimate revisions.
• We'll explore how the recent upgrade in analyst sentiment, driven by upward earnings estimate revisions, shapes Victory Capital Holdings' investment narrative.

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Victory Capital Holdings Investment Narrative Recap

To be a shareholder in Victory Capital Holdings, you need confidence in the company’s ability to generate organic asset growth through new client acquisition and successful integration of acquisitions, particularly as it expands globally. The recent report of US$244 million in long-term AUM net outflows adds near-term uncertainty, but the fresh Zacks Rank #1 upgrade highlights a positive shift in analyst sentiment. The key short-term catalyst remains the upcoming third-quarter results, while persistent outflows are still the primary risk; this news does not fundamentally alter either factor.

Among the company’s recent moves, the extension and refinancing of nearly US$1 billion in term loans stands out as particularly relevant. This decision provides Victory Capital with improved financial flexibility and a reduced debt burden, supporting the company's capacity to weather near-term headwinds in organic growth and giving it headroom for future strategic investments.

However, against the backdrop of analyst optimism, investors should be aware that continued net asset outflows, if not reversed, could...

Read the full narrative on Victory Capital Holdings (it's free!)

Victory Capital Holdings is expected to reach $1.8 billion in revenue and $735.1 million in earnings by 2028. This outlook assumes annual revenue growth of 20.4% and an earnings increase of $470.5 million from the current earnings of $264.6 million.

Uncover how Victory Capital Holdings' forecasts yield a $76.43 fair value, a 16% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community’s fair value estimates for Victory Capital range from US$63.47 to US$76.43 across three viewpoints. While opinions about valuation vary widely, keep in mind that persistent net outflows could weigh on future revenue and earnings strength, consider several perspectives before drawing your own conclusions.

Explore 3 other fair value estimates on Victory Capital Holdings - why the stock might be worth as much as 16% more than the current price!

Build Your Own Victory Capital Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Victory Capital Holdings research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Victory Capital Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Victory Capital Holdings' overall financial health at a glance.

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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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