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Investing.com - Piper Sandler has reiterated an Overweight rating on Assurant (NYSE:AIZ) with a price target of $233.00 ahead of the company’s second-quarter earnings report. Currently trading at $191.78, InvestingPro analysis suggests the stock is undervalued, with analysts’ targets ranging from $217 to $250.
The research firm highlighted several positive developments from the first quarter that it will be monitoring in the upcoming results. Notably, Assurant’s Global Auto segment within Global Lifestyle showed signs of a profitability turnaround, posting the second consecutive quarter of sequential EBITDA growth since the second quarter of 2022. The company’s overall EBITDA stands at $1.16 billion, with revenue growing at 6.18% year-over-year.
Piper Sandler noted that Connected Living client wins from 2024, which initially required investment and were not immediately accretive, began delivering returns in the first quarter of 2025. The firm also pointed to Assurant’s new program partnership with Verizon (NYSE:VZ) for its mobile carrier Total (EPA:TTEF) Wireless announced in the first quarter.
The research note mentioned that Global Housing continues to outperform due to favorable reserve development along with underwriting and expense leverage. May motor vehicle CPI data showed deceleration in long-term input costs, which could benefit the company’s auto-related business lines.
Piper Sandler emphasized robust share repurchases as another positive factor and suggested investors should watch for a potential guidance increase when Assurant reports its second-quarter earnings. InvestingPro data shows the company has maintained dividend payments for 22 consecutive years and is expected to remain profitable this year. Get access to 6 more exclusive ProTips and comprehensive analysis in the Pro Research Report.
In other recent news, Assurant Inc. reported a strong start to 2025 with first-quarter earnings per share (EPS) of $5.79, significantly surpassing the forecasted $2.84. Revenue was slightly below expectations at $3.07 billion compared to the projected $3.08 billion. The company experienced a 14% growth in adjusted EBITDA, showcasing strong operational performance despite $157 million in catastrophe losses impacting the Global Housing segment. Keefe, Bruyette & Woods analyst Tommy McJoynt raised the price target for Assurant shares to $225, maintaining an Outperform rating, reflecting confidence in the company’s continued robust performance.
Assurant also announced a partnership with Ciocca Automotive to offer vehicle protection products across 54 dealerships in New Jersey and Pennsylvania. This collaboration aims to enhance the purchasing experience for both new and used vehicle customers. Additionally, Assurant’s strategic initiatives have included new product launches and expanded insurance offerings, contributing to its strong quarterly performance. The company’s strategic positioning and market prospects have been highlighted by analysts, who have adjusted earnings estimates for future years, indicating optimism about Assurant’s growth potential.
Furthermore, Assurant’s recent partnership with Verizon for Total Wireless Protect is expected to drive growth in the Connected Living segment. The company anticipates continued earnings growth throughout the year, with plans for share repurchases ranging from $200 million to $300 million in 2025. These developments underscore Assurant’s focus on strategic growth and operational excellence across its business segments.
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