UPDATE: Deutsche Bank Raises PT to $47 on Allstate on Book Value, EPS Outlook
Deutsche Bank reiterated its Buy rating on Allstate (NYSE: ALL) and raised its price target from $46 to $47.
Deutsche Bank noted, "We are increasing our target price to $47 based on rolling book value forward one quarter and a modestly higher EPS outlook. However, lower EPS volatility could cause the market to award Allstate stock with valuation multiple expansion, and we believe that there is meaningful risk that our target price is too conservative. Core fundamentals at Allstate continue to improve (increasing ROE, decreasing volatility and expectations of auto PIF growth in 2013). The biggest risk facing Allstate and our Buy recommendation is a significant catastrophe event like a Hurricane Sandy."
Allstate closed at $40.42 on Tuesday.
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