UPDATE: Compass Point Reiterates Neutral Rating, Lowers PT on The Allstate Corporation as Lower CAT Losses Help Beat

In a report published Friday, Compass Point analyst Ken Billingsley reiterated a Neutral rating on The Allstate Corporation ALL, but lowered the price target from $68.00 to $67.00. In the report, Compass Point noted, "We remain Neutral on ALL and are lowering our price target to $67 from $68. The company is a leader in the auto industry, but we believe growth will remain in the low single digit range in 2015. Allstate's 4Q14 results benefitted from lower CAT losses YoY and while top line growth exceeded expectations in the P&C segment, the source of the growth stems from the auto business, with homeowners growth weaker than we anticipated. We believe the company will continue to attempt to cross sell products to diversify premiums (auto/ home) as well as expand its distribution footprint (primarily through Esurance) to target changing buyer habits. With fewer growth opportunities, we believe the company will remain committed to stock repurchases. Stock repurchases were lower than expected in 4Q14 and the company expects to complete its prior repurchase authorization by the end of 1Q15. In addition, the Company has already announced a new repurchase reauthorization of $3B to be completed by mid-2016. The Tangible book value declined from 3Q14 as lower interest rates forced a large adjustment in the company's pension benefits. With shares trading at peak multiples on a P/E basis, and closing in on the peer group, we don't believe there is much room for multiple expansion given that managements 2015 goals are unchanged from 2014." The Allstate Corporation closed on Thursday at $72.30.