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On Friday, Piper Sandler analysts maintained their positive stance on Allstate Corporation (NYSE:ALL) shares, reiterating an Overweight rating and a $248.00 price target. The firm’s confidence in the insurance company, which boasts a market capitalization of $51.7 billion and impressive revenue growth of 12.3% in the last twelve months, follows recent meetings at Allstate’s headquarters and precedes the upcoming annual AIFA insurance conference. According to InvestingPro data, Allstate has maintained dividend payments for 33 consecutive years, demonstrating remarkable financial stability.
Allstate has been under scrutiny due to concerns over the decline in auto insurance policy-in-force (PIF) within its auto segment. Piper Sandler, however, expresses a positive outlook, anticipating that Allstate will reverse this trend and achieve positive auto PIF growth this year. This change is expected due to the current market conditions and the management’s proactive strategies. The company’s strong financial health is reflected in its "GREAT" overall score from InvestingPro’s comprehensive analysis system.
The analysts also predict that the underwriting environment will remain favorable for Allstate throughout 2025, which could further enhance the company’s valuation. They note that while the shrinking auto PIF has been a significant investor worry, the combination of a conducive underwriting climate and management’s efforts should likely halt the decline in PIF within this year.
Piper Sandler emphasizes that Allstate’s valuation is not only attractive at present but may also improve over time. The firm’s outlook suggests that Allstate is well-positioned to address investor concerns and capitalize on favorable market conditions to strengthen its financial standing and market valuation.
In other recent news, Allstate Corporation reported significant catastrophe losses of $1.08 billion for January, primarily due to the California wildfires. This figure, equating to $849 million after-tax, aligns with previous estimates. Despite these challenges, Allstate’s policies in force showed a slight improvement, with a deceleration in the year-over-year decrease in auto policies. Keefe, Bruyette & Woods maintained their Outperform rating for Allstate, with a price target of $240, based on expectations of EPS growth to $17.50 in 2025 and $20.75 in 2026. Similarly, Raymond (NSE:RYMD) James reaffirmed its Strong Buy rating, maintaining a $240 price target while adjusting EPS forecasts due to wildfire losses and increased expenses. CFRA upgraded Allstate’s stock rating to Strong Buy, setting a price target of $230 and highlighting the company’s strategic positioning for growth. The analysts’ confidence reflects expectations of Allstate’s resilience in overcoming recent financial impacts and achieving growth in key performance indicators.
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