Citi downgrades Allstate, says inflation could lead to higher claims costs

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The rising costs for cars and homes should keep Allstate‘s stock from continuing its strong start to the year, according to Citi.

Shares of Allstate have gained roughly 25% year to date, reclaiming their pre-pandemic levels and pushing to the company’s market cap to $41 billion.

Analyst Suneet Kamath downgraded the insurance stock to neutral from buy, saying in a note to clients on Wednesday night that higher claims costs could take a bite out of the company’s earnings.

Credit: www.cnbc.com

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