Virtus Investment Partners (NYSE: NYSE:VRTS) maintained its Overweight rating with a steady price target of $264.00, as per Piper Sandler's latest review.
The firm's analysis follows Virtus Investment's August Asset Under Management (AUM) release and financial activity up to September 19.
Since the previous assessment in August, Virtus Investment's funds have shown robust performance, mirroring the positive trends seen in broader markets. This has led to an upward revision of earnings estimates for the third quarter of 2024 and beyond.
Piper Sandler has raised its third-quarter earnings estimate for Virtus Investment to $6.87, up from the previous $6.79.
Additionally, the firm has increased its earnings projections for the full years of 2024 and 2025 to $26.12 and $29.96, respectively, from the former estimates of $25.83 and $29.10. These adjustments reflect the solid performance of Virtus Investment's funds and the overall positive market movements observed recently.
The analyst from Piper Sandler highlighted that the consistent performance of Virtus Investment's funds aligns with the trends in the broader markets, which has been a contributing factor to the revised estimates. The firm's decision to maintain the $264 price target comes after a careful analysis of the company's recent asset management data and market performance.
Virtus Investment's current financial position appears strong, with the analyst's confidence reflected in the maintained Overweight rating and unchanged price target. The updated earnings estimates for the upcoming quarters suggest a positive outlook for the company's financial performance.
In other recent news, Virtus Investment Partners has reported a rise in its assets under management (AUM) to $180.5 billion, primarily due to market performance and net inflows in retail separate accounts.
The company's earnings per share have also increased to $6.53, alongside an improved operating margin of 32.5%. Despite a decrease in total assets to $174 billion, there has been significant growth in their ETF platform, which now manages over $2 billion in assets.
Virtus has been actively pursuing growth through mergers and acquisitions, particularly in private markets, and expanding its offerings in ETFs, Retail Separate Accounts, and Global Funds.
The company's strategy has resulted in a steady financial outlook, as noted by Piper Sandler, which maintained its Overweight rating on Virtus with a steady price target of $264. Barclays, however, initiated coverage on Virtus shares with an Underweight rating and a price target of $206, citing the company's limited exposure to high-growth sectors.
Virtus has also announced an 18% increase in its quarterly common stock cash dividend, marking the seventh consecutive year of dividend growth. This highlights the firm's solid financial foundation and consistent generation of free cash flow.
InvestingPro Insights
Virtus Investment Partners' (NYSE:VRTS) strong financial position, as highlighted by Piper Sandler's analysis, is further supported by recent data from InvestingPro. The company's P/E ratio of 13.57 suggests that it may be undervalued compared to its peers in the asset management sector. This aligns with the analyst's Overweight rating and could indicate potential for share price appreciation.
InvestingPro Tips reveal that Virtus has raised its dividend for 7 consecutive years and maintained dividend payments for 11 consecutive years. This consistent dividend growth, coupled with a current dividend yield of 4.33%, underscores the company's commitment to shareholder returns and financial stability. Additionally, the company's strong return over the last five years reinforces Piper Sandler's positive outlook on Virtus' performance.
The company's revenue growth of 7.35% over the last twelve months and an EBITDA growth of 9.21% in the same period align with the analyst's upward revision of earnings estimates. These growth figures, combined with a healthy operating income margin of 18.25%, support the optimistic projections for Virtus' financial performance in the coming quarters.
For investors seeking a deeper understanding of Virtus Investment Partners, InvestingPro offers 6 additional tips that could provide valuable insights into the company's financial health and market position.
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