Victory Capital Holdings Maintains Hold Rating Despite EPS Revisions and Limited Upside Potential

Morgan Stanley analyst Michael Cyprys maintains a Hold rating on Victory Capital Holdings despite a 2.8% increase in EPS for Q3 2025 to $1.46 and a 3.7% increase in adjusted EPS for 2025 to $5.89. However, the adjusted EPS for 2026 remains unchanged at $6.35, suggesting limited upside potential. Cyprys raises the price target to $67 but notes the stock is trading at $71.26, indicating a balanced view of the company's valuation and growth prospects.

Title: Morgan Stanley Analyst Maintains Hold Rating on Victory Capital Holdings Despite EPS Revisions

Morgan Stanley analyst Michael Cyprys has maintained a Hold rating on Victory Capital Holdings (NASDAQ: VCTR) despite recent positive earnings per share (EPS) revisions. The analyst's rating reflects a balanced view of the company's current valuation and growth prospects, with a price target of $67, despite the stock trading at $71.26.

The EPS for the third quarter of 2025 has been revised upwards by 2.8% to $1.46, while the adjusted EPS for 2025 has increased by 3.7% to $5.89. However, the adjusted EPS for 2026 remains unchanged at $6.35, suggesting a potential plateau in growth. Despite these improvements, the price target for Victory Capital Holdings has been raised by $1 to $67, but the stock is currently trading at $71.26, indicating limited upside potential.

Michael Cyprys's rating is based on a combination of factors, including the recent performance and future projections for Victory Capital Holdings. According to TipRanks, Cyprys is a 4-star analyst with an average return of 4.0% and a 53.17% success rate. Cyprys covers the Financial sector, focusing on stocks such as CME Group, BlackRock, and Janus Henderson Group [2].

Barclays also maintained a Hold rating on the stock with a $72.00 price target on August 8, further reflecting a cautious stance on the company's valuation [2].

In recent months, Victory Capital Holdings has seen increased interest from institutional investors and hedge funds. For instance, Foundry Partners LLC acquired 10,239 shares of Victory Capital Holdings, and Aviva PLC acquired 12,569 shares [1]. Despite these positive developments, the company's August AUM (Assets Under Management) declined by 2.4% to $161.86 billion [1].

Victory Capital Holdings has been receiving a "Moderate Buy" recommendation from analysts, indicating a positive outlook on the stock [1]. However, the recent EPS revisions and the analyst's Hold rating suggest a balanced view of the company's growth prospects and valuation.

In conclusion, while the EPS revisions indicate positive improvements in Victory Capital Holdings' financial performance, the analyst's Hold rating reflects a cautious stance on the stock's valuation and limited upside potential. Investors should closely monitor the company's future earnings and growth prospects to make informed investment decisions.

References
[1] https://www.marketbeat.com/stocks/NASDAQ/VCTR/news/
[2] https://www.tipranks.com/news/ratings/victory-capital-holdings-hold-rating-maintained-amid-eps-revisions-and-limited-upside-potential-ratings?utm_medium=referral&utm_source=edition.cnn.com