TD Cowen has sustained its positive stance on Allstate (NYSE: ALL), reaffirming a Buy rating and a price target of $224.00.
The firm's outlook remains steadfast in the face of a recent competitor report, highlighting several key factors that underpin their confidence in the insurance company's performance.
The analysis by TD Cowen emphasized Allstate's capacity to achieve its underwriting profitability targets, which includes managing expense ratios effectively even with increased marketing expenditures.
They also pointed out Allstate's strong capital position, bolstered by the anticipated $2.5 billion to $3.5 billion in proceeds from the divestiture of its health businesses.
Further, the firm recognized the increased productivity of Allstate's agents as a significant factor. The increased efficiency is expected to compensate for the reduced number of agents. TD Cowen also noted Allstate's potential for robust growth in policies-in-force, indicating a positive outlook for the company's ability to expand its customer base.
In other recent news, Allstate Corporation (NYSE:ALL) reported significant catastrophe losses in July, totaling an estimated $542 million, largely due to Hurricane Beryl.
This led Keefe, Bruyette & Woods to revise their Q3 and full-year 2024 earnings per share estimates for Allstate to $1.61 and $13.10, respectively, but they maintain their Outperform rating. Allstate also announced the sale of its employer voluntary benefits business to StanCorp Financial for $2 billion, expected to result in a $600 million profit for the company.
On the analyst front, Barclays initiated coverage on Allstate with an Underweight rating and a price target of $175, citing potential growth challenges. However, TD Cowen raised Allstate's price target from $193.00 to $224.00, maintaining a Buy rating on the stock and highlighting the company's attractive estimated price-to-earnings ratio for 2025. Allstate was downgraded from Buy to Hold by CFRA, with a maintained price target of $200.00.
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