FBR Capital Reiterates an 'Outperform' on Allstate (ALL); Adjusting Numbers After Solid Start to 2011
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Price: $261.41 +0.36%
Rating Summary:
16 Buy, 19 Hold, 4 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
16 Buy, 19 Hold, 4 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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FBR Capital reiterates an 'Outperform' on Allstate (NYSE: ALL), raises PT by $1 to $41.
FBR analyst said, "For several quarters now, we have viewed an investment in Allstate like an option: a company with a great brand name, incredible upside potential, but also catastrophe-exposed and poorly managed. We felt that no matter how bad the performance on an operating basis would be, downside would be limited. Of course, if a few things went well, then upside could be material. Until now, the problem is that it has been difficult to find any positive twists in Allstate’s results. But 1Q11 has broken that spell, in our opinion. To start, operating EPS of $0.93 in 1Q11 were materially above the $0.68 consensus estimate, driven primarily by lower catastrophe losses. An earnings beat for Allstate has been rare, as catastrophes have wreaked havoc on the company's earnings. In fact, many believed that catastrophe estimates in 1Q11 projections were too light, giving Allstate a high probability of an earnings miss. We believe that this bottom-line beat could squeeze a few short positions that were established heading into earnings assuming an earnings shortfall."
(FBR lowers Q2 EPS estimate from $0.81 to $0.73, raises Q3 from $0.54 to $0.67, lowers Q4 from $1.08 to $0.97, maintains FY11 at $3.30, and raises FY12 from $3.65 to $3.80)
For more ratings news on Allstate click here and for the rating history of Allstate click here.
Shares of Allstate closed at $31.94 yesterday.
FBR analyst said, "For several quarters now, we have viewed an investment in Allstate like an option: a company with a great brand name, incredible upside potential, but also catastrophe-exposed and poorly managed. We felt that no matter how bad the performance on an operating basis would be, downside would be limited. Of course, if a few things went well, then upside could be material. Until now, the problem is that it has been difficult to find any positive twists in Allstate’s results. But 1Q11 has broken that spell, in our opinion. To start, operating EPS of $0.93 in 1Q11 were materially above the $0.68 consensus estimate, driven primarily by lower catastrophe losses. An earnings beat for Allstate has been rare, as catastrophes have wreaked havoc on the company's earnings. In fact, many believed that catastrophe estimates in 1Q11 projections were too light, giving Allstate a high probability of an earnings miss. We believe that this bottom-line beat could squeeze a few short positions that were established heading into earnings assuming an earnings shortfall."
(FBR lowers Q2 EPS estimate from $0.81 to $0.73, raises Q3 from $0.54 to $0.67, lowers Q4 from $1.08 to $0.97, maintains FY11 at $3.30, and raises FY12 from $3.65 to $3.80)
For more ratings news on Allstate click here and for the rating history of Allstate click here.
Shares of Allstate closed at $31.94 yesterday.
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