In a report released today, Bob Huang from Morgan Stanley maintained a Buy rating on Voya Financial, with a price target of $90.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Bob Huang has given his Buy rating due to a combination of factors, including Voya Financial’s promising turnaround story and the potential for profitable growth across its three main business segments. The company’s valuation remains attractive, as it trades at a discount compared to its historical levels when it had a more capital-intensive annuities business. This suggests that the current market price does not fully reflect the improvements in Voya’s business operations.
Furthermore, Voya has shown significant progress in expanding margins within its Employee Benefits segment and enhancing its Retirement and Investment Management businesses. These advancements, along with strategic initiatives like integrating OneAmerica and expanding wealth and retirement platforms, are expected to drive future growth. Looking ahead to 2026, Voya is projected to generate substantial excess capital, which could facilitate share repurchases and support organic growth. However, potential risks such as unfavorable stop loss claims development or macroeconomic challenges could impact the turnaround, but management has prioritized repricing strategies to mitigate these risks.
In another report released on August 18, RBC Capital also maintained a Buy rating on the stock with a $87.00 price target.