Allstate Sell Rating Justified by Q1 Catastrophe Losses and Capital Concerns

Wells Fargo analyst Elyse Greenspan maintained a Sell rating on Allstate (ALL – Research Report) yesterday and set a price target of $146.00.

Elyse Greenspan has given his Sell rating due to a combination of factors including Allstate’s (ticker: ALL) recent preannouncement of first-quarter catastrophe losses and the company’s current capital position. The preannounced catastrophe (cat) losses for Q1 were slightly higher than consensus estimates, and although not as severe as initially feared, they were still considerable. Additionally, the rate acceleration in Allstate’s Brand was noted, which could signal a shift in their pricing strategy that has yet to prove its effectiveness in fostering growth.

Moreover, while the personal lines sector shows signs of margin improvement and sustained rate increases, Greenspan remains cautious about Allstate’s stock due to its need for capital position improvement. The company has also not demonstrated a return to growth yet, which is critical for investor confidence. The pending sale of Allstate’s Health & Benefits business is another area of uncertainty that could affect the stock’s future performance. All these elements contribute to Greenspan’s cautious stance on Allstate, leading to the Sell rating.

According to TipRanks, Greenspan is a 5-star analyst with an average return of 8.1% and a 60.84% success rate. Greenspan covers the Financial sector, focusing on stocks such as Allstate, Progressive, and Axis Capital.

TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.

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.