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Investing.com - UBS has reiterated its Buy rating and $87.00 price target on Voya Financial (NYSE:VOYA), representing a potential 20% upside from the current price of $72.43, following the company’s partnership with Blue Owl to develop private assets for defined contribution plans. According to InvestingPro data, Voya maintains a "GOOD" financial health score and appears undervalued based on its Fair Value analysis.
The partnership will focus on creating private asset offerings for Voya’s advisor platform and incorporating them into its target date funds, positioning Voya among the first financial services companies to announce this type of collaboration. The company’s strong financial position, evidenced by a robust current ratio of 5.63 and consistent dividend payments for 13 consecutive years, provides a solid foundation for this strategic initiative.
UBS views this move as "positive competition-wise" for Voya, noting it follows similar initiatives in the industry, including Equitable Holdings (NYSE:EQH) offering in-plan annuities for target date funds and Principal Financial Group (NASDAQ:PFG) citing growing opportunities in this space.
The development aligns with what UBS describes as a logical progression for alternative asset managers seeking new capital sources beyond institutional investors, pension funds, and sovereign funds, where allocations aren’t expected to change significantly.
This partnership continues the broader industry trend of fund managers increasingly collaborating with private market firms for retirement offerings, with companies like Vanguard, State Street (NYSE:STT), and BlackRock (NYSE:BLK) pursuing similar strategies. For deeper insights into Voya’s financial metrics and additional ProTips, including its dividend growth history and profitability outlook, check out the comprehensive research available on InvestingPro.
In other recent news, Voya Financial announced its preliminary alternative investment income for the second quarter of 2025, estimated to be between $45 million and $55 million before taxes. These figures are slightly above or below the company’s long-term expectations and precede their upcoming quarterly earnings report. In a strategic financial move, Voya Financial completed a private placement of Pre-Capitalized Trust Securities, raising $600 million to enhance its liquidity. This transaction is designed to provide contingent liquidity for general corporate purposes, with a redemption date set for 2035.
Additionally, Voya Financial has partnered with Savi to enhance its student loan debt solutions for workplace clients. This collaboration aims to provide employers with tools to help employees manage student loan debt, aligning with the SECURE 2.0 Act’s student loan match provision. Voya Investment Management, a subsidiary of Voya Financial, announced several leadership changes, including the expansion of Eric Stein’s role to Chief Investment Officer. Piper Sandler maintained its Overweight rating on Voya Financial, citing strong cash generation and strategic initiatives as positive indicators. Despite a cautious outlook due to macroeconomic uncertainties, Piper Sandler remains confident in Voya’s potential for future performance.
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