.September 11, 2024 Wednesday 04:14:00 PM

Evercore ISI analysts raised Voya Financial’s price target to $82 with an Outperform rating. Shares surged over 5% after Voya announced its acquisition of OneAmerica Financial’s retirement plan business, adding $47 billion in assets. The deal is expected to generate $75 million in pretax earnings and $200 million in revenue in the first year. Voya will use $200 million in excess capital for the acquisition, with an additional $160 million earnout possible by Q2 2026. The acquisition is projected to have an unlevered IRR exceeding 30% and contribute around 7% to forward earnings, surpassing the impact of stock buybacks. Analysts view the acquisition as a positive move that expands Voya’s higher-margin assets under management.