MKM Cuts EPS Estimates on Allstate (ALL) as Hurricane Loss Looms

November 28, 2012 1:13 PM EST
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Price: $73.89 +0.29%

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Analysts at MKM Partners reduced Q4 estimates on insurer Allstate (NYSE: ALL) to account for an losses of $1.08 billion this past October as a result of catastrophes. Losses stem from five events, the most notable is Hurricane Sandy.

"Our new fourth quarter estimate assumes catastrophe losses of $1.24 billion that include roughly $160 million of catastrophe losses for November and December," said analyst Harry Fong.

Despite the revisions, MKM maintained a Buy rating on Allstate (NYSE: ALL) with a price target of $50.00. The Buy rating is tied to the "homeowners' improvement story" which continues to play out, in the view of analysts.

MKM now expects Allstate to report Q4 EPS of $(0.30).

For an analyst ratings summary and ratings history on Allstate click here. For more ratings news on Allstate click here.

Shares of Allstate closed at $40.42 yesterday.

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