Early on Monday, analysts at Goldman Sachs upgraded insurance company The Allstate Corporation (ALL) due to its current discounted valuation.
The analysts upgraded ALL from “Neutral” to “Buy” with a price target of $58, up from $50. This target suggests a 20% upside to Friday’s closing price of $48.22
“Allstate trades at a discount to its historical valuation and its valuation is still below similar peers, despite a higher expected ROE, which we expect to continue to move higher despite low interest rates,” a Goldman Sachs analysts commented. “Compared to a difficult post-crisis period driven by the company’s more levered Life business and a more recent difficult period driven by elevated losses in the company’s homeowners book, ALL has made strides today to improve its risk profile.”
Allstate shares were inactive during pre-market trading on Monday. The stock is up +48.32% over the past year.
The Bottom Line
Shares of Allstate (ALL) have a dividend yield of 2.07% based on Friday’s closing price of $48.22 and the company’s annualized dividend payout of $1.00 per share.
The Allstate Corporation (ALL) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.