Keefe, Bruyette & Woods Downgrades Assurant (AIZ) to Market Perform on Valuation

Keefe, Bruyette & Woods analyst Thomas McJoynt-Griffith downgraded Assurant (NYSE: AIZ) from Outperform to Market Perform with a price target of $182.00 (from $170.00).

The analyst comments "Following the strong end to the year, we're raising our estimates and target, but moving to the sidelines with a downgrade to Market Perform. There are three legs to our neutral outlook on the stock: 1) valuation now at 11.3x our 2024E (10.5x our 2025E) is near the midpoint of the 9-14x historical range; 2) the earnings mix contribution from Housing has doubled from 20% to 40%, meaning the higher-multiple Lifestyle side has fallen from 80% to 60%—and could also add more weather-related earnings volatility; and 3) 2024 investment spend could surprise (disappoint) higher, though we acknowledge the long-term benefits of such spend. So despite a positive business outlook, we do not anticipate upside catalysts near term. "

For an analyst ratings summary and ratings history on Assurant click here. For more ratings news on Assurant click here.

Shares of Assurant closed at $174.49 yesterday.

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