On Monday, Piper Sandler maintained its Obese score on Voya Monetary (NYSE:) shares, with a gentle worth goal of $84.00. The agency’s perspective on the corporate was shared following investor conferences with Voya Monetary’s prime executives, together with CEO Heather Lavallee and the incoming CFO Mike Katz.
The discussions highlighted Voya Monetary’s progress into the third part of its existence as a public firm. The agency anticipates important enhancements in medical cease loss efficiency, anticipated after the re-pricing at first of 2025, which can have an effect on 80% of the ebook.
Voya’s Funding Administration (IM) and Wealth distribution sectors have reportedly outperformed these of different life insurers with substantial asset administration operations. Piper Sandler famous this as a definite benefit for Voya Monetary.
Furthermore, Voya Monetary’s technique to begin pre-announcing variable funding revenue (VII) was identified as a possible trendsetter throughout the trade. This method could also be adopted by others when present headwinds shift to tailwinds.
When it comes to valuation, Voya Monetary is taken into account by Piper Sandler to be significantly enticing amongst fee-focused corporations inside their protection space. The agency sees a number of catalysts for Voya Monetary, together with the constructive reception of the OneAmerica transaction.
In different current information, Voya Monetary efficiently issued $400 million in senior notes due 2034, that are totally and unconditionally assured by Voya Holdings Inc., a wholly-owned subsidiary of Voya Monetary. The corporate additionally lately agreed to amass OneAmerica Monetary Companions’ retirement recordkeeping enterprise, a strategic transfer anticipated to broaden Voya’s footprint within the retirement planning sector. The deal includes Voya paying an upfront consideration of $50 million, with extra contingent consideration of as much as $160 million based mostly on retained revenues and efficiency of transition providers.
On the analyst entrance, Evercore ISI maintained an Outperform score on Voya’s inventory and elevated its worth goal to $82.00, anticipating that the deal will contribute over $75 million in pretax earnings and over $200 million in internet income one yr after closing. Nevertheless, Morgan Stanley downgraded Voya’s inventory from Obese to Equalweight as a result of issues concerning the efficiency of the Well being Options phase.
In different developments, Voya Monetary lately introduced the appointment of Michael Katz as the brand new CFO, set to take his place on January 1, 2025. Piper Sandler reaffirmed its Obese score and $84.00 inventory worth goal for Voya, following the announcement of Katz’s appointment. Barclays initiated protection on Voya Monetary, issuing an Obese score based mostly on the evaluation that Voya has been producing robust and constant money move.
InvestingPro Insights
Following Piper Sandler’s optimistic outlook on Voya Monetary, InvestingPro knowledge additional substantiates the corporate’s robust place. Voya Monetary’s market capitalization stands at $7.53 billion, reflecting a sturdy presence within the monetary sector. Notably, the corporate’s Worth/Earnings (P/E) ratio is at 9.84, which, when adjusted for the final twelve months as of Q2 2024, exhibits an much more enticing worth at 8.58. That is significantly compelling when paired with the corporate’s PEG ratio of 0.23 for a similar interval, suggesting that Voya’s shares could possibly be undervalued relative to its earnings progress.
InvestingPro Suggestions spotlight that Voya Monetary has been persistently rewarding shareholders, elevating its dividend for six consecutive years and sustaining dividend funds for 12 consecutive years. Moreover, the corporate’s liquid property surpass its short-term obligations, indicating a powerful liquidity place. For readers all in favour of a deeper dive into Voya Monetary’s efficiency and potential, InvestingPro affords a wealth of extra ideas, with 7 extra accessible that present additional insights into the corporate’s strategic strikes and market standing.
With a forward-looking dividend yield of two.35% and a dividend progress of 125% within the final twelve months as of Q2 2024, Voya Monetary demonstrates a dedication to returning worth to its shareholders. The corporate’s share worth can be buying and selling close to its 52-week excessive, at 98.08% of the height, which aligns with Piper Sandler’s maintained Obese score and $84.00 worth goal. Buyers in search of to capitalize on Voya Monetary’s potential can discover a complete evaluation and extra InvestingPro Suggestions at https://www.investing.com/professional/VOYA.
This text was generated with the assist of AI and reviewed by an editor. For extra data see our T&C.
