UPDATE: Bank of America Reiterates Neutral Rating, Raises PT on ING US on Substantial ROE Improvement Opportunity

In a report published Tuesday, Bank of America analyst Seth Weiss reiterated a Neutral rating on ING US VOYA, and raised the price target from $38.00 to $41.00. In the report, Bank of America noted, “VOYA offers a substantial ROE improvement opportunity within the life sector. Management is targeting 400-500 bps of ROE improvement by 2016 (12-13%), which we believe is achievable through margin and growth initiatives. However, we believe the stock is unlikely to get full credit for an improved ROE before late 2014/early 2015, when we expect more meaningful capital distribution to commence. Release of capital in the closed block VA could provide upside, but we view risk skewed to the downside.” ING US closed on Monday at $36.27.