Voya Financial (VOYA) an Inflation Net Beneficiary - Piper Sandler

Piper Sandler upgraded shares of Voya Financial (NYSE: VOYA) to Overweight from Neutral, increasing the price target to $65 from $70 per share in a note Friday.

The analyst pointed to a number of reasons for the upgrade, including Voya's acquisition of Allianz Global Investors (AGI) 's U.S. funds. Piper Sandler analyst John Barnidge said the deal offers Voya "enhanced distribution with limited FX exposure while offering revenue protection from flow leakage."

The analyst also said Voya is an inflation net beneficiary across its franchise due to its product portfolio. In addition, he explains that "over-indexing to government, education & healthcare sectors" insulates the company relative to peers should the response to inflation and recessionary concerns be a reduction in employment levels.

"The upcoming management change represents continuity with focus paid towards free cash conversion," added Barnidge. "Ultimately, VOYA's valuation is meaningfully below those life insurers with sizable asset management operations."

Voya shares are up over 1% Friday.

By Sam Boughedda

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