Victory Capital assumed with an Outperform at BMO Capital

BMO Capital assumed coverage of Victory Capital with an Outperform rating and price target of $46, up from $39. The analyst believes Victory’s “discounted valuation is disconnected” from the company’s earnings potential and capital deployment optionality. Potential catalysts for the shares include the return to positive net flows, the deployment of capital for targeted acquisitions, and continued private equity sell-down, the analyst tells investors in a research note.