Piper Sandler Reiterates Overweight Rating on Voya Financial (VOYA)

Piper Sandler analyst John Barnidge reiterated an Overweight rating and $86.00 price target on Voya Financial (NYSE: VOYA).

The analyst commented, "On 7/8/24, after the market closed, VOYA pre-announced alternative investment income and pre-payment fees estimated to be ~$36 - $48 million, pre-tax, which is $7 - $18 million below long-term expectations, before variable and incentive compensation. As a reminder, 9% annual return is the target for long-term expectation. At mid-point ($12.5 million), underperformance vs. plan is sequentially improved from 1Q24 ($15 million below plan). This is the 1st data point so far in 2Q24 lifeco. earnings season with it an incremental negative as it suggests alternative investment income headwinds persisting longer than expected although performance is firmly off the lows seen in 4Q23. As we think about alternative investment income generally, we anticipate path towards normalizing for the industry will be longer than expected given the current commercial real estate cycle. Our 2Q24 EPS estimate fell by $0.04 to $2.12, which compares to current consensus of $2.20."

For an analyst ratings summary and ratings history on Voya Financial click here. For more ratings news on Voya Financial click here.

Shares of Voya Financial closed at $69.83 yesterday.

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