American Financial price target raised to $130 from $125 at Jefferies

Investing.com - Jefferies raised its price target on American Financial (NYSE:AFG) to $130.00 from $125.00 while maintaining a Hold rating on the stock. Currently trading at $129.34 with a P/E ratio of 14.11, InvestingPro analysis suggests the stock is undervalued, while offering an attractive 7.11% dividend yield with a 40-year history of consistent payments.

The research firm expects American Financial to maintain its focus on margins rather than growth in the near term.

Jefferies noted that the completion of non-renewals and other underwriting actions could provide better growth opportunities for the company over the next several quarters.

The firm indicated that American Financial’s outlook for underlying loss ratios remains mostly unchanged, with rate momentum continuing on social inflation exposed lines.

Jefferies pointed out that lower alternative investment returns continue to drag on American Financial’s results, a trend expected to persist in the near term, while earnings per share estimates remain mostly unchanged.

In other recent news, American Financial Group reported its second-quarter earnings for 2025, showing an earnings per share (EPS) of $2.14, which slightly surpassed the forecast of $2.13. The company also reported revenue of $1.92 billion, significantly exceeding the expected $1.73 billion. These results reflect the company’s ability to outperform market expectations in both earnings and revenue. The financial community is taking note of these developments, with analysts from various firms observing the company’s performance. The latest figures highlight the company’s strong financial health and operational efficiency. Investors are closely monitoring these updates as they provide insight into the company’s current standing and future potential. These recent developments are crucial for stakeholders assessing the company’s financial trajectory.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.