Analysts Offer Insights on Financial Companies: Victory Capital Holdings Inc (NASDAQ: VCTR), BBX Capital Corporation (NYSE: BBX) and First Busey Corp (NASDAQ: BUSE)

By Austin Angelo

Companies in the Financial sector have received a lot of coverage today as analysts weigh in on Victory Capital Holdings Inc (VCTRResearch Report), BBX Capital Corporation (BBXResearch Report) and First Busey Corp (BUSEResearch Report).

Victory Capital Holdings Inc (VCTR)

In a report released yesterday, Randy Binner from B.Riley FBR reiterated a Buy rating on Victory Capital Holdings Inc, with a price target of $24. The company’s shares closed last Monday at $16.02.

Binner said:

“Following 2Q19 earnings, we are updating EPS estimates for Victory. The miss in 2Q19 versus our model was due to lower management fees. We had been expecting a decrease, but not as rapid as anticipated. However, management advised that the USAA fees were roughly in-line with 2Q19 reported fees of 60 bps as a % of AUM. This fact pattern coupled with the expected stability of the new USAA assets supports our view of fees into 2020. Another positive development is the pay down of $20M of debt so far in 3Q19 as deleveraging is to be the main use of free cash flow. We model debt reduction of ~$400M through the end of 2021, which puts VCTR at a debt/EBITDA ratio of ~1.8x, similar to where the company operated pre-USAA.”

According to TipRanks.com, Binner is a 5-star analyst with an average return of 11.3% and a 61.4% success rate. Binner covers the Financial sector, focusing on stocks such as Colony Credit Real Estate Inc, Health Insurance Innovations, and National General Holdings.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Victory Capital Holdings Inc with a $21.50 average price target, which is a 33.7% upside from current levels. In a report issued on August 13, RBC Capital also maintained a Buy rating on the stock with a $20 price target.

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BBX Capital Corporation (BBX)

In a report released today, Mike Crawford from B.Riley FBR maintained a Buy rating on BBX Capital Corporation, with a price target of $11.25. The company’s shares closed last Monday at $4.18, close to its 52-week low of $3.75.

According to TipRanks.com, Crawford is a 4-star analyst with an average return of 4.8% and a 51.5% success rate. Crawford covers the Consumer Goods sector, focusing on stocks such as Finjan Holdings, Kratos Defense, and Ducommun Inc.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for BBX Capital Corporation with a $11.25 average price target.

First Busey Corp (BUSE)

In a report released today, Steve Moss from B.Riley FBR maintained a Hold rating on First Busey Corp, with a price target of $28. The company’s shares closed last Monday at $25.06.

Moss noted:

“We lower our rating, from Busey (BUSE – to reflect earnings-per-share challenges due to NIM pressure from lower interest rates. We like BUSE for its attractive and efficiently operated Midwest franchise with a relatively high level of fee income (~28%); however, a limited ability to offset earnings pressure (via repurchases or n/t accretive M&A), from a difficult macro environment that will pressure all banks, makes recommending the stock difficult currently. BUSE trades at 12.1x our 2019 estimate, essentially in line with peers.”

According to TipRanks.com, Moss is a 1-star analyst with an average return of -1.0% and a 42.0% success rate. Moss covers the Financial sector, focusing on stocks such as Zions Bancorporation National Association, Seacoast Banking Corporation Of Florida, and Bridgewater Bancshares Inc.

The word on The Street in general, suggests a Hold analyst consensus rating for First Busey Corp with a $29 average price target.

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