Voya Financial: RBC Maintains Outperform, Raises PT to $87 from $80

Voya Financial: RBC Maintains Outperform, Raises PT to $87 from $80

RBC Capital Markets has maintained its "Outperform" rating for Voya Financial Inc. (VOYA) while raising its price target to $87 from $80. This adjustment reflects the company's strong performance and strategic initiatives, as well as the firm's positive outlook on the retirement and investment management sectors.

In the latest earnings call, Voya Financial reported adjusted operating earnings per share (EPS) of $2.46 for Q2 2025, a 13% increase year-over-year. While the EPS fell short of the forecasted $2.05, the company's revenue exceeded expectations, reaching $1.98 billion against a forecast of $1.95 billion. The stock price rose by 7.1% to $67.95, signaling a positive market reaction [1].

Voya Financial continues to generate significant excess capital, amounting to $200 million in Q2 and $400 million year-to-date. The company's total assets have surpassed $1 trillion, reinforcing its robust position in the retirement and investment management sectors. Voya Financial plans to repurchase $200 million in shares during the second half of 2025 and aims to generate over $700 million in excess capital for the full year.

The firm's strategic initiatives, such as its partnership with Blue Owl Capital for retirement offerings expansion, have contributed to its strong performance. Additionally, Voya Financial's focus on margin improvement in its Stop Loss business and opportunities for retirement market consolidation further support its positive outlook.

RBC Capital Markets' price target increase for Voya Financial reflects the company's strong growth prospects and strategic execution. Investors should monitor the company's ability to maintain this momentum and navigate potential risks, such as market volatility and changes in regulatory environments.

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-voya-financial-q2-2025-sees-stock-surge-despite-eps-miss-93CH-4174032