Wells Fargo analyst Elyse Greenspan maintained a Sell rating on Allstate (ALL – Research Report) yesterday and set a price target of $145.00.
Elyse Greenspan has given her Sell rating due to a combination of factors linked to Allstate’s recent performance and future outlook. The rating reflects concerns about Allstate’s catastrophe losses and the deceleration of rate increases. In January, Allstate reported catastrophe losses that were on par with the previous year’s figures, showing no significant improvement. Furthermore, the rate increases that had been observed in December, particularly in California, New York, and New Jersey, have lost momentum, indicating a potential slowdown in revenue growth.
Greenspan’s cautious stance is further supported by Allstate’s capital position and growth prospects. Despite a generally favorable view on the personal auto insurance sector for the year, Greenspan notes that Allstate’s capital strength has diminished since before the pandemic, with the Risk-Based Capital (RBC) ratio and premium-to-surplus numbers falling short of previous levels. This weaker capital position may restrict Allstate’s growth opportunities and hinder its competitive edge, justifying the Sell recommendation.
According to TipRanks, Greenspan is a 5-star analyst with an average return of 10.6% and a 64.30% success rate. Greenspan covers the Financial sector, focusing on stocks such as Allstate, Arthur J Gallagher & Co, and Progressive.
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Allstate (ALL) Company Description:
The Allstate Corporation is an insurance company which offers property & casualty (P&C), and other insurance products in the United States and Canada. The company is the third-largest P&C insurer and the largest publicly-held personal lines carrier in the United States. It also provides a range of life insurance and investment products.
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