Bank of America Securities analyst Joshua Shanker reiterated a Buy rating on Allstate (ALL – Research Report) yesterday and set a price target of $279.00.
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Joshua Shanker has given his Buy rating due to a combination of factors, primarily driven by Allstate’s strong performance in the fourth quarter of 2024. The company reported operating earnings per share that significantly exceeded both his and the market’s expectations. Allstate’s auto and homeowners’ loss ratios were notably better than anticipated, and catastrophe losses were much lower than forecasted, which contributed positively to the overall financial results.
Looking ahead, Shanker anticipates improvements in Allstate’s underwriting margins and expects a stabilization in their policy count, with potential growth in the coming year. The company has also been proactive in raising auto insurance rates, which is expected to bolster future earnings. Despite some challenges such as anticipated losses from California wildfires, the long-term outlook remains positive. He maintains a price objective of $279, suggesting considerable upside potential from the current share price.
In another report released today, Roth MKM also maintained a Buy rating on the stock with a $230.00 price target.
ALL’s price has also changed moderately for the past six months – from $169.020 to $193.010, which is a 14.19% increase.