BofA downgrades Voya Financial to Underperform in ‘reset’ year

As previously reported, BofA downgraded Voya Financial (VOYA) to Underperform from Neutral with a price target of $71, down from $79. Should management’s long-term guidance of 90%-100% income to free cash flow conversion hold true, it implies about $70M0-$780M of income for 2025, or $7.10-$7.90 of EPS, as compared with consensus of $8.14, the analyst says. Despite management guidance, the firm has “difficulty” finding low enough margins to justify sub-$8 EPS in 2025, presenting downside to our already reduced 2025 EPS forecast, telling investors that it views 2025 as a “reset” year.