Allstate Downgraded To In Line At Evercore ISI On Balanced Risk-Reward

Group 1 - Evercore ISI downgraded Allstate Corp. from Outperform to In Line, setting a price target of $233.00 due to a more balanced risk-reward following strong stock performance this year [1] - Analysts noted that earnings forecasts showed limited differentiation, with upside potential reduced to approximately 2.5% compared to over 4% previously [1] - Margin normalization is expected in 2026 and 2027, with lower loss ratios being offset by weaker expense ratios, which limits the scope for positive estimate revisions [1] Group 2 - Allstate remains inexpensive compared to historical levels, rival Progressive, and the equal-weighted S&P, but slower earnings growth over the next two years limits rerating potential [2] - The firm highlighted that Allstate is not under-earning on investment income as it had been in 2018-2019 [2]