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Investing.com - Jefferies has reduced its price target on Allstate (NYSE:ALL) to $250.00 from $255.00 while maintaining a Buy rating on the insurance company’s stock. According to InvestingPro data, the company currently trades at 9.36x earnings, while seven analysts have recently revised their earnings estimates upward.
The firm cited moderated near-term PIF (policies in force) growth estimates after reviewing rate filings as the reason for the slight target reduction.
Despite the lower price target, Jefferies continues to see Allstate positioned for a modest multiple re-rating based on three factors: modest PIF growth driving premium gains, strong underwriting earnings flowing into results, and return on equity exceeding 20%.
The research firm noted that Allstate is benefiting from improved retention as it laps prior rate hikes, while new business momentum remains favorable for the insurer.
Jefferies expects auto PIF growth to accelerate to 3-4% year-over-year as rate increases normalize, and believes Allstate stock, currently trading at approximately 9 times next twelve months price-to-earnings, has upside potential to 10.5 times.
In other recent news, Allstate Corporation reported estimated catastrophe losses of $184 million for July 2025, attributed to 19 separate wind and hail events across the country. Despite these losses, the company experienced slight growth in its policy portfolio, with total protection policies in force reaching 37.9 million, marking a 0.7% increase compared to the previous year. Analyst firms have been active in their evaluations of Allstate, with BMO Capital raising its price target to $235 and maintaining an Outperform rating, following a meeting with the company’s executives. Similarly, Keefe, Bruyette & Woods (KBW) increased its price target to $246, citing Allstate’s second-quarter earnings outperformance and adjusting earnings per share forecasts upward for the next three years. Wells Fargo also raised its price target to $202, maintaining an Equal Weight rating, and noted factors affecting policy growth, including declines in certain markets. These updates reflect analyst confidence in Allstate’s financial performance and growth prospects.
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