Voya Financial (VOYA – Research Report), the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Joshua Shanker from Bank of America Securities reiterated a Hold rating on the stock and has a $79.00 price target.
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Joshua Shanker has given his Hold rating due to a combination of factors surrounding Voya Financial’s recent performance and strategic outlook. Despite exceeding earnings expectations for the fourth quarter of 2024, this beat was largely attributed to one-time items such as a lower-than-anticipated medical stop-loss ratio and an unusually low tax rate. These factors, while positive for the short term, may not be sustainable in the long run.
Moreover, while there were strong fund flows in the asset-gathering segments, the outlook for capital return is less optimistic. Voya Financial plans to reduce the amount of capital returned to shareholders in 2025 as it invests more in business growth, leading to a decrease in expected share repurchases. Consequently, this potential reduction in buybacks contributes to a more conservative future earnings outlook, prompting Shanker to maintain a Neutral stance with a Hold rating on the stock.
According to TipRanks, Shanker is a 5-star analyst with an average return of 8.9% and a 59.78% success rate. Shanker covers the Financial sector, focusing on stocks such as Progressive, Axis Capital, and Everest Group.
In another report released yesterday, Morgan Stanley also maintained a Hold rating on the stock with a $78.00 price target.