Michael Zaremski, an analyst from BMO Capital, maintained the Buy rating on Allstate (ALL – Research Report). The associated price target remains the same with $230.00.
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Michael Zaremski’s rating is based on a combination of factors that suggest a positive outlook for Allstate’s stock. Despite a slight miss in the April Policies in Force (PIF) numbers compared to BMO’s estimates, the overall growth trajectory remains promising. The company’s strategic focus on expanding its direct-to-consumer and independent agency channels is expected to drive organic policy count growth beyond current expectations in the coming years.
Additionally, moderate trends in auto insurance inflation are anticipated to support profit margins in the auto segment. While the April PIF growth was slightly below expectations, it was still the second strongest month of 2024, indicating resilience in Allstate’s market position. These factors collectively contribute to a favorable view of Allstate’s potential for future growth, justifying the Buy rating.
In another report released yesterday, KBW also maintained a Buy rating on the stock with a $235.00 price target.