Allstate Corporation (ALL) Gains Analyst Confidence as Catastrophe Losses Ease and Earnings Outlook Strengthens

Allstate Corporation (NYSE:ALL) is one of the best cheap stocks to buy for 2026. The Allstate Corporation (NYSE: ALL) will hold its fourth-quarter 2025 earnings conference call and webcast on Thursday, February 5, 2026, at 9:00 a.m. ET.

On January 22, BMO Capital analyst Michael Zaremski raised the price target on Allstate Corporation (NYSE:ALL) to $249 from $244 and kept the Outperform rating on the shares unchanged. Zaremski attributed the higher valuation to lower estimated reinsurance costs following lighter catastrophe loss levels in the second half of 2025.

BMO’s move follows Allstate’s update on January 15 in which it announced estimated pre-tax catastrophe losses for Q4 2025 of $209 million. This was a huge decline from the $1.99 billion reported in Q2 2025. The company estimated the December 2025 catastrophe losses at $80 million, indicating a continued slowdown in the run-rate of severe weather events and natural disasters during the latter part of the year. BMO noted that this reduction in catastrophe losses directly impacts Allstate’s reinsurance expenses.

The updated $249 target equates to about 10.7 times BMO’s projected 2026 earnings per share for Allstate. This aligns with the company’s 17-year average forward price-to-earnings ratio, not counting its old life and annuity operations.

Separately, on January 14, Mizuho raised its price target on Allstate to $255 from $254, while maintaining an Outperform rating on the stock. Mizuho’s update came after the firm updated its financial models for the insurance sector. The analysts noted that the revised models focus on several key industry drivers, including pricing strategies, loss trends, and reserve levels.

Allstate Corporation (NYSE:ALL) provides property and casualty insurance products, including auto, home, and commercial coverage, as well as life insurance and retirement solutions across the United States. Its operations are supported by a broad distribution network of agents, brokers, and direct-to-consumer channels.

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Disclosure: None. This article is originally published at Insider Monkey.