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Research Alert: CFRA Reiterates Hold Opinion On Shares Of Voya Financial, Inc.

05/11/2021 08:52

12:50 PM EDT, 05/11/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month target price by $12 to $70, or 11.8x our 2021 operating EPS estimate of $5.94 (raised by $0.54) and 10.6x our 2022 EPS estimate of $6.60 (upped by $0.10) versus VOYA's three-year average forward multiple of 10x, a peer average of 8x (including distressed firms). Q1 operating EPS of $1.70 versus $0.83 topped our $1.16 operating EPS estimate and the $1.20 consensus forecast on higher-than-expected alternative income, though underlying operating earnings fell by 10.6% on 39% lower Health Solutions profits (amid Covid-19 claims). Wealth profits more than doubled to $255M (on better investment results) and Asset Management profits rose by 30% to $52M, but Q1 net outflows of $1.2B contrasted with net inflows of $223M a year ago. We applaud VOYA's restructuring that has shifted its business mix to a fee-based, less capital intensive one, but at current levels, the shares (which yield a below-peer 1%) trade at a premium to peer and historical averages and are fairly valued, in our view.