Barclays analyst Jeremy Campbell reinstated Victory Capital Holdings Inc. at "overweight," saying the acquisition of USAA Asset Management Co. increased assets under management to $147.8 billion from $64.1 billion.
The deal also creates significant adjusted EPS accretion through the achievement of $120 million in run-rate synergies in the next 12 to 15 months together with combined adjusted EBITDA margins of 46%.
"Additionally, the ability to turbo down debt from Victory's strong free cash flow should coil the spring for another eventual acquisition as the company executes on its roll-up strategy," Campbell wrote.
The price target is $23. The EPS estimate is $2.69 for 2019 and $3.95 for 2020.
