Citi downgrades Allstate to Sell with $240 price target

Citi analyst Matthew Heimermann downgraded Allstate (NYSE: ALL) from Neutral to Sell, raising the price target to $240 from $226, according to a press release statement.

Heimermann said the downgrade reflects concerns that Allstate is "significantly over-earning today," while cautioning that growth may not improve further. The analyst also cited potential headline risk related to homeowners' affordability and argued that a normalized book value multiple suggests the stock's current price exceeds its fundamental value over the next 12 months.

Shares of Allstate closed at $269.67 prior to the announcement.

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