Morgan Stanley analyst Bob Huang upgraded the rating on Voya Financial (VOYA – Research Report) to a Buy today, setting a price target of $87.00.
Bob Huang has given his Buy rating due to a combination of factors that suggest a promising future for Voya Financial. Despite the company’s 2024 earnings per share falling short of expectations, management has laid out a credible turnaround strategy that instills confidence in its long-term growth potential. The challenges faced, particularly in the Health Solutions segment, are expected to diminish, leading to stabilized results and an upward trajectory in earnings per share and return on equity.
Moreover, the stock’s current valuation appears to be undervalued, not fully accounting for Voya’s potential, especially given its less capital-intensive nature. The company’s strategic initiatives, including recent acquisitions and investments in key areas, are anticipated to enhance capital generation and improve overall earnings. These factors, combined with management’s ability to execute on integrations and segment improvements, underpin Huang’s optimistic outlook for Voya’s future performance.
Based on the recent corporate insider activity of 32 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of VOYA in relation to earlier this year.