Allstate stock rating reiterated at Outperform by BMO Capital

Published 05/09/2025, 13:30
Allstate stock rating reiterated at Outperform by BMO Capital

Investing.com - BMO Capital has reiterated its Outperform rating and $235.00 price target on Allstate (NYSE:ALL), maintaining a positive outlook on the insurance provider. The stock, currently trading near its 52-week high of $214.76, is showing strong momentum with a 14.3% return over the past year. According to InvestingPro analysis, Allstate appears undervalued based on its Fair Value metrics.

The investment firm’s decision follows a meeting with Allstate’s President of Property-Liability, Mario Rizzo, along with Head of Investor Relations, Allister Gobin, and IR Finance Manager, Keivelle Lake.

BMO Capital believes Allstate is well-positioned to benefit from favorable near-term loss-cost trends relative to pricing levels, which should generate returns on equity exceeding 20%.

The firm noted that Allstate’s current price-to-earnings valuation of less than 10x suggests the market is not anticipating significant growth acceleration for the company.

BMO Capital views this as a "medium bar to potentially exceed" in 2026 as previously less-profitable states return to Allstate’s operational portfolio.

In other recent news, Allstate Corporation reported impressive second-quarter 2025 results, with earnings per share reaching $5.94, far exceeding the anticipated $3.32. The company’s revenue also surpassed expectations, totaling $16.6 billion against a forecast of $15.22 billion. Additionally, Allstate announced estimated catastrophe losses of $184 million for July 2025, attributed to 19 separate wind and hail events across the United States. The insurance provider noted a slight increase in its policy portfolio, with total protection policies in force rising to 37.9 million, marking a 0.7% growth from the previous year.

Analyst firms have been adjusting their outlooks following these developments. BMO Capital raised its price target for Allstate to $235, citing the company’s earnings beat and lower expense ratio. Similarly, Keefe, Bruyette & Woods increased its price target to $246, highlighting Allstate’s quarterly outperformance. Wells Fargo also revised its price target upward to $202, noting growth factors impacting Allstate’s policy portfolio. These recent developments showcase the dynamic factors influencing Allstate’s financial landscape.

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