NewsMV
A Sell rating from Citigroup has moved Allstate (ALL) to the top of the watchlist for property-casualty investors.
The bank flagged the insurer's recent operating returns as unsustainable, a judgment that challenges the earnings story behind the stock. The next test of that thesis will come from Allstate's own financial disclosures.
The downgrade Citigroup's call is direct: the operating returns Allstate has posted recently are not at a level the bank expects to hold.
A Sell is the firmest negative signal a Wall Street firm places on a stock, and it shifts the burden of proof onto the company to demonstrate otherwise.
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