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Investing.com - Keefe, Bruyette & Woods raised its price target on Assurant (NYSE:AIZ) to $254.00 from $248.00 on Thursday, while maintaining an Outperform rating on the stock.
The investment firm cited stronger Housing segment growth and underwriting margins as key factors for the upward revision of its 2025, 2026, and 2027 forward EPS estimates, despite higher Corporate segment losses related to investment in a new adjacent business program.
The new price target represents a 12.5x price-to-earnings ratio based on 2026 estimates, reflecting KBW’s continued confidence in Assurant ’s business trajectory following its third-quarter earnings report.
KBW highlighted positive momentum across multiple business units, noting that Assurant’s Connected Living division benefits from carrier clients capturing 80% of postpaid subscriber net additions in the U.S. mobile market.
The firm also pointed to improving Auto underwriting margins, which have turned positive, and robust profit growth in the Housing segment that continues to benefit from expense leverage.
In other recent news, Assurant, Inc. reported its third-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $5.76, significantly higher than the projected $4.32. The company also exceeded revenue forecasts, reporting $3.23 billion compared to the anticipated $3.16 billion. In addition to its strong earnings performance, Assurant’s Board of Directors authorized a new $700 million share repurchase program and increased its quarterly dividend by 10 percent. This new buyback authorization is in addition to approximately $141 million remaining from the previous repurchase program. BMO Capital raised its price target for Assurant to $246 from $238, maintaining an Outperform rating, citing stronger growth projections in the Lifestyle segment. The firm also adjusted its 2025 earnings per share estimates upward by 9%, while keeping estimates for 2026 and 2027 unchanged. These developments reflect positive momentum for Assurant as it continues to demonstrate strong financial performance and strategic initiatives.
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