Wall Street Analysts Are Bullish on Top Financial Picks


There’s a lot to be optimistic about in the Financial sector as 3 analysts just weighed in on Victory Capital Holdings Inc (VCTR), Ashford Inc (AINC) and First Busey Corp (BUSE) with bullish sentiments.

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 $20. The company’s shares closed yesterday at $15.55, close to its 52-week high of $17.00.

Binner commented:

“Victory Capital Holdings (VCTR—Buy, $20 PT) reported 1Q19 operating EPS of $0.35 versus the B. Riley FBR/ consensus estimates of $0.36/$0.35. This in-line result had some puts and takes mainly due to new accounting of expenses into revenue, but overall was a good result. The main focus now for investors is on the close of the USAA acquisition. Total AUM was $58.1B with total net flows of $(1.1B), but flows are close to flat on a YTD basis. The company reiterated its expected close of the USAA acquisition of and increased the expense synergies savings target by $10M. We reiterate our $20 PT as we continue to believe that Victory’s acquisition of USAA Asset Management will create meaningful scale. We expect AUM to more than double from its current $58B at the close of the deal.”

According to TipRanks.com, Binner is a 5-star analyst with an average return of 13.4% and a 66.7% success rate. Binner covers the Financial sector, focusing on stocks such as Health Insurance Innovations, National General Holdings, and Prudential Financial Inc.

Victory Capital Holdings Inc has an analyst consensus of Moderate Buy, with a price target consensus of $19.

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Ashford Inc (AINC)

In a report released today, Bryan Maher from B.Riley FBR maintained a Buy rating on Ashford Inc, with a price target of $74. The company’s shares closed yesterday at $47.64, close to its 52-week low of $46.22.

Maher observed:

“We are lowering our estimates and price target for Ashford Inc. after 1Q19 results missed estimates and our expense expectations for the balance of 2019 increase somewhat, particularly in 2Q19. Specifically, we believe spending at in order to make its internal operations more commercial, will be higher than we previously expected. In 1Q19, adjusted EBITDA came in at $11.3M, below our $12.5M estimate and the consensus estimate of $12.2M, while adjusted EPS came in at $2.39, below our $2.48 estimate and the consensus estimate of $2.50. The miss was partially due to higher-than-expected G&A expenses ($8.0M vs. our $6.0M estimate) as well as higher-than-expected salaries and benefits expense ($14.8M vs. our $12.8M estimate). G&A included ~$1.2M in one-time items associated with the acquisition of BAV along with executive severance/recruitment.”

According to TipRanks.com, Maher is a 1-star analyst with an average return of -0.6% and a 50.0% success rate. Maher covers the Financial sector, focusing on stocks such as Industrial Logistics Properties Trust, Senior Housing Properties Trust, and Office Properties Income Trust.

Currently, the analyst consensus on Ashford Inc is a Moderate Buy with an average price target of $91.

First Busey Corp (BUSE)

In a report released today, Steve Moss from B.Riley FBR reiterated a Buy rating on First Busey Corp, with a price target of $30. The company’s shares closed yesterday at $25.97.

Moss wrote:

“First Busey (BUSE) has built an attractive franchise via acquisitions—and the recently announced Investors Security Trust (IST) acquisition is a unique opportunity that incrementally adds to its Florida franchise. Additional wealth management acquisitions like IST are unlikely, unless they are part of a whole bank transaction. Such a whole-bank transaction is likely within the next 18-months as BUSE will need an acquisition to cross the $10B threshold. Until that time, we expect the balance sheet should remix from securities to loans and that the efficiency ratio should improve once cost saves from the Bank Ed acquisition are realized late in 4Q19.”

According to TipRanks.com, Moss is a 2-star analyst with an average return of 0.0% and a 46.3% success rate. Moss covers the Financial sector, focusing on stocks such as Seacoast Banking Corporation Of Florida, Bridgewater Bancshares Inc, and Meta Financial Group.

Currently, the analyst consensus on First Busey Corp is a Hold with an average price target of $28.

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