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On Monday, Keefe, Bruyette & Woods signaled confidence in Allstate Corporation (NYSE:ALL) by increasing the insurance giant’s price target from $235.00 to $240.00, while retaining an Outperform rating on the stock. The decision follows Allstate’s fourth-quarter 2024 earnings report and subsequent conference call, which provided insights into the company’s financial performance and future prospects.
The firm’s analysts have adjusted their earnings per share (EPS) estimates for Allstate for the years 2025 and 2026. They now project the 2025 EPS to be $17.50, up from the previous estimate of $17.10. For 2026, the EPS forecast has been raised to $20.75 from $20.45. These revisions are based on expectations of quicker net investment income (NII) growth and reduced core loss ratios, which are somewhat balanced by anticipated slower premium growth, increased catastrophe losses, and higher expense ratios. InvestingPro data reveals that Allstate has maintained dividend payments for 32 consecutive years, with a current yield of 1.93%.
Allstate reported catastrophe losses of $1.69 billion in the first quarter of 2025, which is a significant figure that has been factored into the analysts’ evaluations. Despite these losses, the analysts believe that Allstate’s core loss ratio improvement and the potential for a return to organic growth in personal auto policies in force (PIF) will bolster investor confidence in the company’s normalized earnings growth trajectory.
The upgraded price target of $240.00 is set at 11.6 times the firm’s projected 2026 earnings per share. This valuation reflects the analysts’ positive outlook on Allstate’s ability to grow earnings and deliver value to shareholders. Keefe, Bruyette & Woods’ maintained Outperform rating suggests that they expect Allstate’s stock to perform better than the overall market or its sector in the near future.
In other recent news, Allstate Corporation reported fourth-quarter earnings surpassing analysts’ expectations, with adjusted earnings per share of $7.67 and revenue of $16.5 billion, an 11.3% YoY increase. Allstate’s net income applicable to common shareholders rose to $1.9 billion in Q4 2024, up from $1.5 billion in the prior year quarter. In other recent developments, CFRA analyst Catherine Seifert upgraded Allstate’s stock rating from ’Buy’ to ’Strong Buy’, maintaining a price target of $230.00, based on the firm’s projected operating earnings per share. BMO Capital Markets reiterated their Outperform rating on Allstate shares with a steady price target of $222.00, highlighting the company’s solid margin and policy-in-force figures. Morgan Stanley (NYSE:MS) raised their price target slightly from $228.00 to $229.00, while reaffirming an Overweight rating on the stock, following Allstate’s recent announcement of the sale of its Group Health business. These recent developments reflect the evolving landscape of Allstate’s financial performance and strategic initiatives.
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