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On Monday, Keefe, Bruyette & Woods analyst Tommy McJoynt increased the price target on Assurant shares to $225 from the previous target of $224, while reaffirming an Outperform rating for the company. McJoynt’s decision follows Assurant’s first-quarter earnings beat, prompting an adjustment to the firm’s earnings per share estimates for the years 2025 and 2026, with a slight increase of 1-2%. Additionally, Keefe, Bruyette & Woods introduced their 2027 earnings estimate, reflecting confidence in the company’s continued robust performance.
McJoynt’s analysis highlights Assurant’s growth potential across its business segments, including Housing, with a focus on lender-placed and renters insurance, as well as Connected Living and Global Auto, which cover mobile device protection and vehicle service contracts, respectively. The analyst’s forward estimates for 2026 earnings per share are 3% higher than the consensus, suggesting a more optimistic view of Assurant’s future earnings.
The rationale behind the price target adjustment is based on an 11.3 times earnings multiple, which lies at the midpoint of Assurant’s historical range of 9 to 14 times. Current InvestingPro metrics show the company trading at a P/E ratio of 15.76, with analysis suggesting the stock is currently undervalued compared to its Fair Value. This valuation reflects a balanced approach, incorporating both a degree of conservatism and the potential for growth, catastrophe losses, and margin expansion within the company’s operations.
Assurant’s stock price target increment, though marginal, indicates Keefe, Bruyette & Woods’ belief in the company’s ability to sustain its earnings growth and deliver value to shareholders. McJoynt’s commentary underscores the firm’s confidence in Assurant’s strategic positioning and its prospects for the coming years, particularly in its key business lines.
The Outperform rating, coupled with the revised price target, suggests that Keefe, Bruyette & Woods views Assurant as a favorable investment opportunity, with expected performance that could outpace the broader market. Assurant’s shareholders and potential investors can look to this analysis as a sign of continued positive momentum for the company.
In other recent news, Assurant Inc (NYSE:AIZ). announced its first-quarter 2025 earnings, showcasing significant growth in earnings per share (EPS). The company reported an EPS of $5.79, which far exceeded the expected $2.84, marking a substantial earnings surprise for investors. While revenue was slightly below expectations at $3.07 billion against a forecast of $3.08 billion, the overall performance was bolstered by a 14% increase in adjusted EBITDA. Assurant’s Global Housing segment experienced a 31% growth in adjusted EBITDA, despite facing $157 million in catastrophe losses, primarily due to California wildfires. The company also highlighted its strategic initiatives, such as launching new products and expanding insurance offerings, which contributed to its strong performance.
In addition to the financial results, Assurant announced a new partnership with Verizon (NYSE:VZ) for the Total (EPA:TTEF) Wireless Protect program, aiming to drive growth in the Connected Living segment. The company plans to repurchase shares worth between $200 million and $300 million in 2025, reflecting confidence in its ongoing growth trajectory. Assurant’s outlook for 2025 remains optimistic, with expectations for continued earnings growth across its Connected Living, Global Auto, and Housing segments. As the company navigates potential impacts from tariffs and macroeconomic uncertainties, it remains focused on operational excellence and financial performance.
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