Bob Huang, an analyst from Morgan Stanley, maintained the Buy rating on Allstate. The associated price target remains the same with $245.00.
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Bob Huang has given his Buy rating due to a combination of factors that highlight Allstate’s strong performance and potential for growth. The company demonstrated robust growth in its auto policies in force (PIF), adding 69,000 new auto policies in a month that is typically slower, alongside a sequential increase of 12,000 in homeowners’ policies. This growth is notable given the intense competition in the property and casualty insurance industry, where many competitors are striving for profitable auto growth and market share.
Additionally, Allstate’s management of catastrophe losses has been commendable, with a significant reduction in pre-tax catastrophe losses compared to the previous year. This reduction, alongside the company’s strategic focus on maintaining a durable combined ratio amidst a competitive environment, positions Allstate favorably for future performance. Bob Huang’s analysis suggests that these factors, combined with the company’s ability to navigate inflationary pressures in auto insurance costs, underpin the Buy rating for Allstate’s stock.
Huang covers the Financial sector, focusing on stocks such as Progressive, Allstate, and Globe Life. According to TipRanks, Huang has an average return of -1.0% and a 53.01% success rate on recommended stocks.
In another report released today, KBW also maintained a Buy rating on the stock with a $246.00 price target.