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HSBC Global Research upgraded Allstate (NYSE:ALL) stock to Buy from Hold on Thursday on the basis that prospects for a turnaround in the insurer's underwriting profitability has improved markedly.
The enhanced opportunities are driven by a "combination of decisive management actions, and a more conducive regulatory environment," analyst Vikram Gandhi wrote in a note.
In addition, rate increases continued to compound this year across personal auto and homeowners insurance lines in the U.S., he noted. "That said, given the meaningful weight HO in Allstate’s book, we think it could quite conceivably engage in a more widespread rate filing action throughout 2024."
His Buy rating aligns with the SA Quant system rating of Strong Buy and the average Wall Street analyst rating of Buy.
ALL gained 1.3% in Thursday morning trading, bringing its year-to-date gains to about 23%.
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