Voya Financial guidance calls into question credibility, says Jefferies

Jefferies says Voya Financial (VOYA) disclosed last night weaker than expected Q4 stop loss performance and guided to continued pressure in 2025. The preannouncement follows “disappointing” stop loss results year-to-date and calls into question Voya’s credibility with respect to turning this business around near-term, the analyst tells investors in a research note. Jefferies believes the primary driver appears to be continued elevated claims through November. It expects downward revisions to earnings estimates, price targets and potentially ratings on Voya following the news. The firm keeps a Hold rating on Voya with an $87 price target and expects the guidance to pressure the stock.