UBS Reiterates a 'Buy' on Allstate (ALL); Raising Estimates with Catalysts and Upside In Sight

UBS reiterates a 'Buy' on Allstate (NYSE: ALL) price target raised $2 to $37.

UBS analyst said, "Possible catalysts include better-than-expected margins in homeowners, higher-than-expected share buybacks, and improved visibility on the return of growth for auto policies in force. 1Q12 EPS also could be better-than-expected as QTD catastrophe losses appear to be well within our 1Q12 cat load for ALL."

"We are raising our 2012 & 2013 EPS estimates by $0.05 each (to $3.80 and $4.15, each more than $0.10 above consensus), mainly reflecting light weather-related losses in 1Q12 and higher buybacks in 2013. UBSe 2014 EPS of $4.55 translates into 11.3% op ROE, well below ALL’s target of 13%. We believe the 13% is a stretch, but if ALL can achieve its target, there is $0.70 upside to UBSe 2014 EPS."

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 $32.56 yesterday.

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