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Investing.com - Keefe, Bruyette & Woods (KBW) raised its price target on Allstate (NYSE:ALL) to $246.00 from $237.00 while maintaining an Outperform rating following the insurer’s second-quarter 2025 earnings report.
The investment firm cited Allstate’s quarterly outperformance and adjusted its earnings per share forecasts upward for 2025, 2026, and 2027 to $21.75, $22.40, and $23.85, respectively, from previous estimates of $18.44, $20.65, and $22.50.
KBW’s revised outlook reflects expectations for lower core loss ratios, reduced catastrophe losses, decreased expense ratios, and higher Service segment income, partially offset by slower premium and net investment income growth.
The new price target represents a multiple of 11.0 times KBW’s 2026 earnings per share estimate for Allstate.
KBW expects Allstate’s improved core loss ratio and declining rate increases to drive personal auto policy-in-force growth, which should contribute to both earnings growth and multiple expansion for the insurance company. According to InvestingPro’s Fair Value analysis, Allstate appears undervalued, with additional insights available in the comprehensive Pro Research Report, part of the analysis covering 1,400+ top US stocks.
In other recent news, Allstate Corp reported impressive second-quarter 2025 earnings, significantly surpassing analyst expectations. The company announced earnings per share of $5.94, exceeding the anticipated $3.32, representing a 78.92% surprise. Revenue also outperformed forecasts, totaling $16.6 billion against the projected $15.22 billion. These results contributed to a positive market reaction. In addition to the earnings report, Wells Fargo (NYSE:WFC) adjusted its price target for Allstate, raising it to $202 from $197 while maintaining an Equal Weight rating. The research firm highlighted several factors influencing Allstate’s policies-in-force growth, particularly noting declines in the New York and New Jersey markets. These developments underscore the company’s current financial performance and market positioning.
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