UPDATE: BTIG Research Initiates Coverage on Voya Financial with Buy Rating, $31 PT on Compelling Value Play

In a report published Monday, BTIG Research analyst Mark Palmer initiated coverage on Voya Financial

with a Buy rating and $31.00 price target. In the report, Palmer noted, “We are initiating coverage of Voya Financial (formerly ING U.S.) with a BUY recommendation and a $31 price target based on 0.8x the company's YE12 book value excluding accumulated other comprehensive income (AOCI). We believe VOYA is significantly undervalued and that its shares' steep discount to book value is due in large part to erroneous perceptions of the business attributable to its hybrid nature. We view VOYA's asset management/retirement services unit as the dominant part of the company – it represented approximately 70% of its FY12 operating profits – vastly overshadowing concerns about the life insurance unit and its legacy variable annuity closed blocks (for which the company has $7.6bn in statutory reserves) and meriting a significantly better valuation than that which the market is currently ascribing to the shares.” Voya Financial closed on Friday at $24.92.