UPDATE: Argus Downgrades Allstate (ALL) to Hold

May 20, 2022 7:23 AM EDT
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Price: $126.73 +1.04%

Rating Summary:
    13 Buy, 17 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 3 | Down: 8 | New: 6
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(Updated - May 20, 2022 7:24 AM EDT)

Argus analyst Kevin Heal downgraded Allstate (NYSE: ALL) from Buy to Hold.

The analyst comments "We are lowering our rating on Allstate Corp. (NYSE: ALL) to HOLD from BUY. The company is facing pressure in its auto insurance business due to rising costs for parts, repairs, and replacement vehicles, and expects these costs to remain elevated in the near term. It is also facing higher costs in its property-casualty business due to extreme weather events, and weak returns in its investment portfolio. On the positive side, the company continues to deliver above-average ROE and solid underwriting results, and has a strong balance sheet. We also believe that management has the ability to raise prices, cut costs, and increase policies in force. Despite these long-term positives, we believe that Allstate's near-term outlook has weakened and are lowering our EPS estimates for both 2022 and 2023. We believe that the shares are fully valued at 13.0-times our 2022 estimate, above the midpoint of the five-year range of 5.9-17.4 and above the peer median, and that a HOLD rating is now appropriate. We would consider returning the stock to our BUY list on signs of reduced cost pressures and improved investment returns."

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

Shares of Allstate closed at $125.79 yesterday.

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