UPDATE: Deutsche Bank Downgrades Allstate on Valuation

In a report published Monday, Deutsche Bank analyst Joshua Shanker downgraded Allstate ALL from Buy to Hold, and lowered the price target from $58.00 to $57.00.

In the report, Deutsche Bank noted, “Consensus estimates for run-rate earnings power at Allstate are now around $5+ per share accurately reflected Allstate's earnings power in the current interest rate environment. Further, valuation of Allstate stock has closed the gap with its large cap P&C peers. We continue to believe that Allstate is likely to outperform those commercial P&C peers, but further upside will rest heavily on macro trends and multiple expansion rather than fundamental execution. Our Hold rating reflects upside in the stock, but not enough to begin building a new position in the name.”

Allstate closed on Friday at $52.15.