On Friday, Piper Sandler showed confidence in Assurant Inc. (NYSE:NYSE:AIZ) by increasing the stock's price target to $205 from the previous $195, while keeping an Overweight rating. The firm's analysis suggests that Assurant's earnings potential, particularly in its Global Housing segment, is a key factor in the revised target.
The firm acknowledged that their first-quarter 2024 earnings projection for Assurant is slightly below the consensus. However, their expectations for the full years of 2024 and 2025 are more optimistic, attributing the difference to timing rather than fundamental issues. The emphasis on the emergence of earnings in the Global Housing sector was highlighted as a significant element in the firm's assessment.
The upgrade in the price target reflects an increased earnings per share (EPS) estimate and a boost in the expected multiple for 2025 to 12.0 times from 11.6 times, which is above the 5-year average of 11.5 times. The firm noted that there are few companies for which they are raising EPS estimates this quarter, but Assurant is one of them.
The firm also anticipates that Assurant's profitability will not only continue to improve in the Global Housing division but will also see an uptick in the auto segment within Global Lifestyle. This expected enhancement in profitability across segments is projected to contribute to the stock's multiple expansion.
In summary, Piper Sandler's price target increase for Assurant is based on a combination of higher EPS estimates and an expanded earnings multiple for the year 2025. The firm's outlook for Assurant is notably positive, with expectations of robust earnings growth driving the potential for stock appreciation.
InvestingPro Insights
Piper Sandler's recent price target increase for Assurant Inc. reflects a positive outlook on the company's earnings potential, particularly in its Global Housing segment. Complementing this analysis, InvestingPro data and tips provide a broader financial perspective on Assurant's performance and potential.
InvestingPro Data shows Assurant's market capitalization stands at $9.33 billion, with a trailing P/E ratio of 13.94, which is below the industry average, indicating that the stock may be undervalued relative to its near-term earnings growth. The company's revenue growth for the last twelve months as of Q4 2023 was 9.21%, suggesting a strong upward trajectory in its financial performance.
Adding to the fundamental analysis, InvestingPro Tips highlight that Assurant has raised its dividend for 20 consecutive years, showcasing a strong commitment to returning value to shareholders. Additionally, four analysts have revised their earnings upwards for the upcoming period, further solidifying the positive sentiment around the company's future profitability.
For readers looking to delve deeper into Assurant's financials and gain access to more exclusive insights, InvestingPro offers additional tips. Discover a more comprehensive analysis with a subscription to InvestingPro, and don't forget to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.