Jefferies Raises American Financial Group (AFG) Price Target to $130

Jefferies has raised its price target for American Financial Group (AFG) to $130, a 4% increase, while maintaining its "Hold" rating. The investment remains categorized under "Hold" with a neutral outlook. The average target price for AFG is $130.20, with a high estimate of $145.00 and a low estimate of $124.00. The estimated GF Value for AFG in one year is $122.74, suggesting a downside of 5.1% from the current price.

Jefferies has increased its price target for American Financial Group (AFG) to $130, representing a 4% uptick from the previous target of $125. The investment remains under a "Hold" rating with a neutral outlook. The average target price for AFG stands at $130.20, with high and low estimates of $145.00 and $124.00, respectively. The estimated GF Value for AFG in one year is $122.74, indicating a potential downside of 5.1% from the current price.

The recent earnings report for American Financial Group for the second quarter of 2025 showed an earnings per share (EPS) of $2.14, which exceeded the forecast of $2.13. Revenue for the quarter was $1.92 billion, significantly surpassing the expected $1.73 billion. These results reflect the company’s ability to outperform market expectations in both earnings and revenue, highlighting its strong financial health and operational efficiency.

Jefferies noted that American Financial is focusing on margins rather than growth in the near term. The completion of non-renewals and other underwriting actions could provide better growth opportunities for the company over the next several quarters. The firm indicated that American Financial’s outlook for underlying loss ratios remains mostly unchanged, with rate momentum continuing on social inflation exposed lines. Lower alternative investment returns continue to drag on American Financial’s results, a trend expected to persist in the near term, while earnings per share estimates remain mostly unchanged.

Institutional investors have also taken notice of these developments, with several major players increasing their stakes in American Financial Group. For instance, American Financial Group Inc. 401 K Retirement & Savings Plan raised its holdings by 0.9% in the first quarter, while Charles Schwab Investment Management Inc. grew its position by 395.5%. Dimensional Fund Advisors LP, Northern Trust Corp, and Goldman Sachs Group Inc. also increased their stakes in the company.

These developments underscore American Financial Group’s strong financial performance and the market's growing confidence in its ability to navigate the current market conditions. As the company continues to focus on margin improvement and strategic growth opportunities, investors will be closely monitoring its progress.

References:
[1] https://www.investing.com/news/analyst-ratings/american-financial-price-target-raised-to-130-from-125-at-jefferies-93CH-4182266
[2] https://za.investing.com/news/analyst-ratings/jefferies-lowers-generation-bio-stock-price-target-to-12-from-40-93CH-3835998
[3] https://www.marketbeat.com/instant-alerts/american-financial-group-nyseafg-price-target-cut-to-12400-by-analysts-at-keefe-bruyette-woods-2025-08-12/