Allstate Positioned for Growth: Buy Rating with 27% Upside Potential

Jefferies analyst Andrew Andersen maintained a Buy rating on Allstate today and set a price target of $250.00.

Andrew Andersen has given his Buy rating due to a combination of factors that suggest Allstate is positioned for growth and profitability. Despite moderating near-term policy-in-force (PIF) growth estimates after reviewing rate filings, he believes Allstate is set for a modest re-rating. This is driven by modest PIF growth that is expected to boost premium gains, strong underwriting earnings, and a return on equity exceeding 20%.
Furthermore, as rate increases stabilize, auto PIF growth is anticipated to accelerate to 3-4% year-over-year. Allstate’s current trading at approximately 9 times next twelve months price-to-earnings ratio presents an upside potential to 10.5 times, with a price target of $250, indicating a 27% upside potential. The unchanged earnings per share estimates for 2025 through 2027, which are above street estimates, further support this positive outlook.

In another report released on September 5, BMO Capital also reiterated a Buy rating on the stock with a $235.00 price target.