On Wednesday, Piper Sandler adjusted its price target on shares of Virtus Investment Partners (NASDAQ:NYSE:VRTS), increasing it slightly to $267 from the previous $265, while keeping an Overweight rating on the stock. The decision follows a review of the asset management firm's April assets under management (AUM) and market data up to May 21.
The firm's analysts noted that since their last mark-to-market (MTM) update in late April, the broader markets have risen by nearly 5%. This uptick has prompted them to enhance their forward estimates for Virtus Investment Partners by 2-3%. The improvement is attributed to better performance, although it is partially tempered by some outflow challenges.
Piper Sandler's revised price target of $267 is rooted in a valuation pegged at approximately 6.5 times the enterprise value to the estimated adjusted EBITDA for the year 2024. This valuation remains unchanged from their previous assessments. The new target reflects the analysts' expectations of higher earnings driven by recent market performance.
The review and subsequent price target adjustment come after considering the latest available data on assets under management and the flow and market conditions impacting Virtus Investment Partners. The firm's analysis includes the most current financial figures and market trends to provide an updated outlook on the company's stock.
Virtus Investment Partners is an asset management company that offers investment solutions to both individual and institutional investors. The company's stock performance and outlook are closely tied to market conditions, investor sentiment, and its ability to manage assets effectively. Piper Sandler's updated price target suggests confidence in the company's potential for growth and profitability in the coming year.
InvestingPro Insights
Piper Sandler's positive outlook on Virtus Investment Partners is echoed by recent data and analysis from InvestingPro. With a market capitalization of $1.63 billion and a P/E ratio of 13.54, Virtus Investment Partners is positioned as a robust player in the asset management sector. The company's commitment to rewarding shareholders is evidenced by a notable dividend yield of 3.33% and a consistent track record of dividend growth, with a 15.15% increase over the last twelve months as of Q1 2024.
InvestingPro Tips highlight the company's financial health and potential for investor returns. Virtus Investment Partners has been profitable over the last year and analysts predict continued profitability. This is supported by the company's solid gross profit margin of 40.34% and an operating income margin of 17.4%. Additionally, with liquid assets surpassing short-term obligations, the firm demonstrates financial stability that may reassure investors.
For those seeking more in-depth analysis, InvestingPro offers additional tips, including insights into the company's earnings revisions and valuation metrics. With two analysts having revised their earnings upwards for the upcoming period, there's an optimistic sentiment surrounding Virtus Investment Partners' future performance. To explore these insights and more, consider subscribing to InvestingPro using the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are currently seven more InvestingPro Tips available for Virtus Investment Partners, providing a comprehensive outlook on the company's investment potential.
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