Allstate stock price target raised to $235 from $230 at BMO Capital

Published 20/08/2025, 14:54
Allstate stock price target raised to $235 from $230 at BMO Capital

Investing.com - BMO Capital raised its price target on Allstate (NYSE:ALL) to $235.00 from $230.00 on Wednesday, while maintaining an Outperform rating on the insurance company’s stock. The stock, currently trading near its 52-week high of $213.18, has delivered an impressive 18.87% return over the past year.

The firm revised its earnings per share estimates for 2025, 2026, and 2027 by +18%, +2%, and +2% respectively. These adjustments reflect Allstate’s second-quarter earnings beat and lower expense ratio, partially offset by weaker near-term buybacks and a slightly higher underlying loss ratio due to tariffs. According to InvestingPro data, 12 analysts have recently revised their earnings estimates upward, with the company maintaining strong financial metrics including a P/E ratio of 9.74.

BMO Capital noted that while Allstate made bullish comments about underlying auto organic growth during its second-quarter report, the firm’s monthly policy-in-force (PIF) roll-forward calculations suggest potential downside risk during the third quarter unless retention improves quickly. With a market capitalization of $55.82 billion and revenue growth of 9.81%, Allstate maintains a "GREAT" overall financial health score according to InvestingPro’s comprehensive analysis, which offers additional insights through its detailed Pro Research Report.

The research firm’s forecasts for Allstate’s auto PIF growth are -70 basis points for third-quarter 2025, -20 basis points for fourth-quarter 2025, and +100 basis points for 2026 compared to consensus estimates.

BMO Capital attributed its price target increase to its higher overall view of the company, despite noting that headwinds from Esurance and Encompass brands have resurfaced.

In other recent news, Allstate reported impressive second-quarter 2025 earnings, significantly exceeding expectations. The company posted earnings per share of $5.94, far surpassing the anticipated $3.32, representing a 78.92% surprise. Revenue also outperformed projections, reaching $16.6 billion against the forecasted $15.22 billion. Following these results, Keefe, Bruyette & Woods (KBW) raised its price target for Allstate to $246, maintaining an Outperform rating, and adjusted its earnings per share forecasts upwards for the coming years. Wells Fargo (NYSE:WFC) also increased its price target to $202, citing growth factors affecting Allstate’s policies-in-force, despite declines in certain markets like New York and New Jersey. These developments highlight Allstate’s strong financial performance and potential for continued growth.

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