UPDATE: Evercore Partners Raises Target to $36 on Allstate
Evercore Partners maintains its Overweight rating on Allstate (NYSE: ALL) and raises its price target by $2 to $36 a share on improvement of homeowner margins.
Evercore Partners notes, " Our thesis for margin improvement in HO is playing out well with Allstate Brand homeowners AYLR ex cats improving substantially by 6.2 points this quarter vs. 80 bps y/y in 3Q11, and 2Q11 and 40 bps in 1Q11. We believe future margins will continue to improve due to rate increases of 7.8% in 17 states this quarter, implying an 8.5% trailing four-quarter rate increase. Average gross written and earned premiums grew 7.1% and 7.9% respectively this quarter, as approved rate increases flow through earnings."
ALL closed at $30.28 a share yesterday.
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