Morgan Stanley lifts Allstate stock target to $229, maintains Overweight

Published 06/02/2025, 20:46
Morgan Stanley lifts Allstate stock target to $229, maintains Overweight

Morgan Stanley (NYSE:MS)’s continued Overweight rating suggests that the firm views Allstate’s stock as a potentially strong investment with the expectation that it will outperform the average total return of stocks in the analyst’s coverage universe over the next 12 to 18 months. The slight price target increase reflects a positive but cautious outlook on the company’s financial performance and strategic initiatives. Trading at a P/E ratio of 12.3, InvestingPro analysis indicates that Allstate is currently undervalued compared to its Fair Value, with additional insights and detailed valuation metrics available in the comprehensive Pro Research Report, which covers over 1,400 US stocks. Trading at a P/E ratio of 12.3, InvestingPro analysis indicates that Allstate is currently undervalued compared to its Fair Value, with additional insights and detailed valuation metrics available in the comprehensive Pro Research Report, which covers over 1,400 US stocks.

Morgan Stanley’s continued Overweight rating suggests that the firm views Allstate’s stock as a potentially strong investment with the expectation that it will outperform the average total return of stocks in the analyst’s coverage universe over the next 12 to 18 months. The slight price target increase reflects a positive but cautious outlook on the company’s financial performance and strategic initiatives. Trading at a P/E ratio of 12.3, InvestingPro analysis indicates that Allstate is currently undervalued compared to its Fair Value, with additional insights and detailed valuation metrics available in the comprehensive Pro Research Report, which covers over 1,400 US stocks.

Allstate’s strategic efforts to expand its Auto segment were also cited as a contributing factor to the increased price target. The company’s push for growth in this area appears to be a key component of its overall business strategy moving forward.

The sale of Allstate’s Group Health business is a significant development for the company, indicating a realignment of focus and resources towards its core areas of operation. This move could have implications for the company’s financial health and strategic direction in the coming years.

Morgan Stanley’s continued Overweight rating suggests that the firm views Allstate’s stock as a potentially strong investment with the expectation that it will outperform the average total return of stocks in the analyst’s coverage universe over the next 12 to 18 months. The slight price target increase reflects a positive but cautious outlook on the company’s financial performance and strategic initiatives.

In other recent news, Allstate Corporation (NYSE:ALL) reported robust fourth-quarter earnings, exceeding analyst expectations. The company’s impressive performance was driven by enhanced underwriting results in its Property-Liability segment and increased investment income. Allstate posted adjusted earnings per share of $7.67 for the quarter, a significant rise from $5.82 reported in the same period last year. Revenue for the quarter stood at $16.5 billion, surpassing the consensus estimate of $15.96 billion and marking an 11.3% increase year-over-year.

The company’s net income applicable to common shareholders escalated to $1.9 billion in the fourth quarter, up from $1.5 billion in the prior year quarter. Total (EPA:TTEF) revenues for the full year reached $64.1 billion, a 12.3% increase from the previous year. Investment income was a key contributor to Allstate’s performance, surging to $3.1 billion in 2024, a 24.8% increase from the prior year.

The company’s homeowners insurance segment reported $1.3 billion of underwriting income for the year while covering $3.7 billion of customers’ catastrophe losses. Allstate also disclosed that losses from the January California wildfires are expected to be about $1.1 billion, pre-tax, net of reinsurance. As part of their forward-looking statements, Allstate anticipates total Property-Liability policies in force to grow in 2025 as auto insurance policy renewal rates improve and new business continues to increase.

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