Allstate (ALL – Research Report), the Financial sector company, was revisited by a Wall Street analyst today. Analyst Bob Huang from Morgan Stanley maintained a Buy rating on the stock and has a $229.00 price target.
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Bob Huang’s rating is based on several key factors that highlight Allstate’s potential for growth and stability. First, despite challenges in states like California, New York, and New Jersey, Allstate is expected to achieve significant growth in policy counts in other states, leading to an overall positive trajectory in 2025. The emphasis on improving loss ratios and maintaining underwriting discipline is anticipated to stabilize earnings and improve profitability over the next few years.
Moreover, Allstate’s strategic focus on reducing risk and enhancing underwriting income is projected to lead to a favorable combined ratio and higher earnings per share by 2026. The current valuation of Allstate is considered attractive, especially given the absence of a capital-intensive life and annuity business, which had been divested earlier. This positions Allstate as a strong investment opportunity amidst a competitive landscape, prompting an Overweight recommendation by Bob Huang.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a $253.00 price target.