Investing.com - Morgan Stanley raised its price target on Voya Financial (NYSE: VOYA ) to $88.00 from $86.00 on Tuesday, while maintaining an Overweight rating on the financial services company’s stock.

The investment bank cited expectations that Voya’s turnaround efforts would gain further traction despite near-term challenges, including stop-loss improvements, volatility in alternative investment income, and macro environment uncertainties potentially affecting investment management and wealth management segments.

Morgan Stanley noted that Voya is demonstrating incremental positive developments that should support its longer-term performance, with the firm’s thesis driven by anticipated improvements in the Health Solutions segment and the resumption and increase of share buybacks in the second half of 2025 and into 2026.

The bank also highlighted expected earnings accretion from Voya’s OneAmerica integration and steady growth in the company’s Wealth segment as factors supporting its positive outlook.

Morgan Stanley projects Voya could achieve approximately $10 in earnings per share in 2026, above the current consensus estimate of $9.79, putting the company on track to eventually reach its target of 14-16% return on equity.

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