Voya stock outlook remains positive, focused on value expansion and OneAmerica deal By Investing.com
On Monday, Piper Sandler maintained his overweight rating on shares of Voya Financial (NYSE: ), with a net price target of $84.00. The company's vision for the company was shared following investor meetings with Voya Financial's top executives, including CEO Heather Lavallee and incoming CFO Mike Katz.
The discussions highlighted Voya Financial's progress in the third phase of its existence as a public company. The company expects a significant improvement in the performance of medical stop loss, which is expected after re-pricing in early 2025, which will affect 80% of the book.
Voya Investment Management (IM) and Wealth Distribution are reported to have outperformed other health insurance companies in terms of asset management performance. Piper Sandler noted this as a distinct advantage of Voya Financial.
In addition, Voya Financial's strategy to introduce variable income investment (VII) was highlighted as a potential trendsetter in the industry. This method may be adopted by others when the prevailing winds change to tailwinds.
In terms of valuation, Voya Financial is considered by Piper Sandler to be particularly attractive among companies focused on payments in their area. The company sees many positives for Voya Financial, including the positive reception of the OneAmerica transaction.
In other recent news, Voya Financial has successfully issued $400 million in senior notes due 2034, fully and unconditionally guaranteed by Voya Holdings Inc., a wholly owned subsidiary of Voya Financial. The company also recently agreed to acquire the retirement recordkeeping business of OneAmerica Financial Partners, a strategic move that is expected to increase Voya's footprint in the retirement planning sector. The agreement involves Voya paying an upfront fee of $50 million, with an additional consideration of up to $160 million based on retained earnings and the performance of transition services.
On the analyst front, Evercore ISI maintained an Outperform rating on Voya's stock and raised its price target to $82.00, expecting the deal to generate more than $75 million in pre-tax earnings and more than $200 million in revenue one year after of closure. However, Morgan Stanley downgraded Voya's stock from Overweight to Equalweight due to concerns about the performance of the Health Solutions segment.
In other developments, Voya Financial recently announced the appointment of Michael Katz as its new CFO, effective January 1, 2025. Piper Sandler reaffirmed his Overweight rating and $84.00 stock price for Voya, following the announcement of Katz's appointment . Barclays initiated coverage on Voya Financial, issuing an Overweight rating based on the assessment that Voya has been generating strong and consistent cash flows.
InvestingPro Insights
Following Piper Sandler's optimistic view of Voya Financial, InvestingPro's data also confirms the company's strong position. Voya Financial's market capitalization stands at $7.53 billion, indicating a strong presence in the financial sector. Notably, the company's Price/Earnings (P/E) ratio is 9.84, which, when adjusted for the last twelve months from Q2 2024, shows an even more attractive value at 8.58. This is especially compelling when paired with the company's PEG ratio of 0.23 over the same period, suggesting that Voya shares may be undervalued relative to its earnings growth.
InvestingPro Tips highlights that Voya Financial has been rewarding shareholders, increasing its dividend for 6 consecutive years and maintaining dividend payments for 12 consecutive years. Additionally, the company's liquid assets exceed its short-term liabilities, indicating a strong cash flow position. For readers interested in delving deeper into Voya Financial's performance and capabilities, InvestingPro offers a wealth of additional tips, with 7 more available that provide additional insight into the company's strategic moves and market positioning.
With a forward-looking dividend yield of 2.35% and dividend growth of 125% over the past twelve months through Q2 2024, Voya Financial demonstrates its commitment to returning value to its shareholders. The company's share price is also trading near its 52-week high, at 98.08% of the high, which coincides with Piper Sandler's Overweight rating and price target of $84.00. Investors looking to capitalize on the power of Voya Financial can find complete analysis and additional InvestingPro tips at
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