Bullish indicating open at $55-$60, IPO prices at $37
On Wednesday, Truist Securities adjusted its outlook on Assurant (NYSE:AIZ) shares, raising the price target to $250 from the previous $240, while maintaining a Buy rating on the stock. Currently trading at $210.40, the company boasts a perfect Piotroski Score of 9, indicating strong financial health. According to InvestingPro analysis, Assurant appears slightly undervalued based on its proprietary Fair Value model. The revision comes amid expectations of increased catastrophe losses stemming from the LA wildfires, which have led to a reduction in the 2025 earnings per share (EPS) estimate to $16.35, down from the prior $18.80 forecast.
The firm’s analysts have also modified their non-catastrophe forecast, lowering it to $20.90 from $21.35, following management guidance on favorable reserve development. Additionally, Truist Securities has introduced a new 2026 EPS estimate of $20.50, which includes an anticipated $2.90 per share in catastrophe losses. The non-catastrophe EPS estimate for 2026 is set at $23.40, marking a 12% increase year over year.
The rationale behind the increased price target is based on the belief that Assurant’s stock should trade at 12 times the firm’s estimated 2026 EPS. This multiple aligns with the company’s historical 10-year average, though it sits at the lower end of the Specialty Insurance group’s range. Currently, Assurant trades at a P/E ratio of 14.92, which appears attractive given its growth prospects. Want deeper insights into Assurant’s valuation metrics? InvestingPro subscribers have access to over 30 advanced valuation metrics and a comprehensive Pro Research Report.
Truist Securities’ revised estimates reflect a cautious yet optimistic view of Assurant’s future financial performance, taking into account both the challenges posed by natural disasters and the potential for positive outcomes in non-catastrophic areas. The new price target suggests confidence in the company’s ability to navigate the complexities of its market segment and deliver shareholder value over the long term. With a market capitalization of $10.79 billion and analysts forecasting FY2025 EPS of $16.66, the company’s growth trajectory remains promising despite near-term headwinds.
In other recent news, Assurant, Inc. has made significant leadership changes across its European and Latin American operations, including appointing Felipe Sanchez as the new president of Assurant Europe and Christian Formby transitioning to the role of president, Specialty Solutions, Global Housing. In addition, Diego Gomez will take over as president of Assurant Mexico, and Ines Aramburu is set to become the president of Assurant Argentina. These changes are part of Assurant’s ongoing strategy to foster talent development and expand its international business footprint.
Morgan Stanley (NYSE:MS) recently initiated coverage on Assurant with an Equalweight rating. The firm’s outlook is based on expectations that Assurant will achieve approximately $800 million in adjusted EBITDA for its Global Lifestyle segment in 2024. They also project that Assurant’s adjusted EBITDA in the Global Lifestyle division will increase to $865 million by 2025, with continued organic growth and margin improvements in the Connected Living segment.
Assurant has also announced the appointment of former UPS executive Kevin Warren to its Board of Directors. Warren’s expertise in customer experience and digital strategies is expected to enhance Assurant’s business operations and growth initiatives. This appointment coincides with the planned retirement of long-standing board member Lawrence Jackson at Assurant’s 2025 annual shareholder meeting and Paget Alves leaving the board to assume the role of CEO at Sorensen.
These are just a few of the recent developments at Assurant, underscoring the company’s commitment to strategic leadership, corporate governance, and business growth.
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