Story updated at 10 a.m. to reflect market activity.
Shares of ING gained 2.8% to $36.23 in morning trading.
The bank raised its price target for the company to $43 from $40. Analyst Yaron Kinar said the company has several potential catalysts.
"First and foremost $2/ps of additional DTA NPV, as the recent redomestication of VOYA's VA subsidiary allows the company to utilize the now US sub's profits against NOLs," Kinar wrote. "In addition, the reduction of ING Groep's stake in the company to less than 50% improves liquidity, takes VOYA one step closer to becoming eligible to join the S&P and also adds visibility to the NPV calculation of the DTA. Finally, while higher excess capital guidance was largely expected, it does anchor expectations upwards. A $300mm buyback authorization should boost ROEs and a one-quarter valuation roll-forward also contributed to the new TP."