William Blair analyst Adam Klauber upgraded Allstate to Outperform from Market Perform without a price target. Investors should buy Allstate "as the shares are primed for good near- and long-term upside," the analyst tells investors in a research note. Recent indications provide increased conviction that Allstate’s combined ratio can return to 95% by 2024, which should translate into $15.00 of operating earnings per share, says the analyst. The company’s favorable trends include high levels of reserving-accident year picks suggest being on top of claim issues, potential inflection of increasing premium rates and decelerating claim frequency, contends Blair. It says the "clear factor driving the stock will be improving combined ratios."
Published first on TheFly
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- Allstate price target lowered to $120 from $130 at BMO Capital
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- Allstate sees February catastrophe losses $211M, or $167M after-tax
- Allstate raises quarterly dividend 4.7% to 89c per share
- Allstate estimates of January catastrophe losses $307M
