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On Friday, BMO Capital Markets maintained their positive stance on Allstate (NYSE:ALL), reiterating an Outperform rating and a $230.00 price target. The decision came after the insurance giant, currently trading at $207.23 and commanding a market cap of $54.92 billion, reported its Policy in Force (PIF) numbers for April, which fell slightly short of expectations. InvestingPro data shows the stock trading near its 52-week high of $212.91.
According to BMO Capital analyst Michael Zaremski, Allstate’s April PIF showed a month-over-month increase of 0.3%, adding 75,000 policies to reach a total of 25,175. This increment was below the consensus estimate for a typical 0.3% monthly growth pace in the second quarter and also did not meet BMO’s own estimate of 25,252 policies for April, which would have represented a 0.6% month-over-month rise. Despite the modest PIF growth, the company maintains strong fundamentals with revenue growth of 11.49% and trades at a P/E ratio of 13.89.
Zaremski noted that the April PIF figures were particularly disappointing when taking into account seasonal trends. Historically, April is considered one of the strongest months for policy growth, likely due to tax refunds that prompt shopping among less-preferred drivers—a segment where Allstate has been focusing its growth efforts.
In light of the recent PIF data, BMO Capital has adjusted its growth estimate for Allstate in 2025, lowering it to 2.6% from the previous estimate of 2.9%. Despite this adjustment, the firm’s outlook on Allstate remains optimistic, as evidenced by the reaffirmed Outperform rating and price target.
Allstate has not publicly responded to the revised estimates. The company’s stock performance will continue to be watched closely by investors as it navigates market expectations and seasonal trends in the insurance sector. According to InvestingPro analysis, Allstate currently appears undervalued, with 8 analysts recently revising their earnings estimates upward. For deeper insights into Allstate’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Allstate Corporation has been the focus of several analyst updates following its first-quarter 2025 earnings results. Raymond (NSE:RYMD) James raised its price target for Allstate to $250, maintaining a Strong Buy rating, citing the company’s robust growth profile and defensive business nature. This adjustment comes after Allstate’s first-quarter performance exceeded expectations, leading to increased earnings per share (EPS) estimates for 2025 and 2026. Similarly, Keefe, Bruyette & Woods (KBW) increased their price target to $235, maintaining an Outperform rating, and revised their EPS estimates upwards due to Allstate’s strong quarterly performance.
BMO Capital Markets also raised its price target to $230, reaffirming an Outperform rating, based on Allstate’s better-than-expected first-quarter results and projected EPS growth. BMO’s analysis suggests a positive trajectory for Allstate’s auto policies in force, expecting a 2.9% rise for the full year 2025. Despite reporting substantial catastrophe losses in April, totaling $594 million, KBW remains confident in Allstate’s future performance, maintaining their second-quarter catastrophe loss estimate at $2.17 billion.
These analyst perspectives reflect a general confidence in Allstate’s ability to navigate current challenges and achieve growth, particularly in its auto insurance segment. The updated price targets and ratings indicate optimism about Allstate’s financial performance and strategic positioning in the market.
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