12:12 PM EDT, 03/28/2024 (MT Newswires) -- Allstate ( ALL ) is poised for a "reversal of fortune," with an earnings rebound in 2024 to continue through 2026 as its 2023 rate increases are expected to push the company's underwriting margins, BofA Securities said in a Thursday note.

The company could even surpass its multi-year margin records given its rate increases and BofA Securities said this was the "key motivation" that led it to raise earmings-per-share estimates for 2025 and 2026.

"Allstate ( ALL ) is likely to be over-earning long-term margin expectations by the equivalent of around $1.30," said the investment firm.

BofA Securities reiterated its buy rating on Allstate ( ALL ), with an increased price target of $209 from $189.

BofA Securities also raised its price targets for insurers Progressive (PGR) and Travelers (TRV).

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