Tornadoes Put Allstate (ALL) Earnings at Risk, Deutsche Bank Comments
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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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Deutsche Bank today maintained a Buy rating on Allstate (NYSE: ALL) with a price target of $57.00. Analyst Joshua Shanker said recent tornadoes and hail in the Oklahoma City suburbs likely will cause Allstate $100-$300 million in pre-tax losses.
"2012's Superstorm Sandy showed investors that Allstate was no longer disproportionately exposed to hurricane activity relative to peers, but the memory of 2Q11's tornado activity keeps former investors wary of Allstate’s catastrophe exposure. A profitable quarter in the face of meaningful non-hurricane losses could reassure investors of Allstate's earnings stability," said Shanker.
"The devastation wrought by this tragic event likely will cause Allstate $100mm $300mm in pre-tax losses. A significant portion of this amount is already captured in the "cat load" we set before 2Q13 began. We are revising down 2013 EPS by $0.25, but note that additional weather activity would cause us to revisit this preliminary estimate," he added.
For an analyst ratings summary and ratings history on Allstate (NYSE: ALL) click here. For more ratings news on Allstate click here.
Shares of Allstate closed at $49.08 yesterday.
"2012's Superstorm Sandy showed investors that Allstate was no longer disproportionately exposed to hurricane activity relative to peers, but the memory of 2Q11's tornado activity keeps former investors wary of Allstate’s catastrophe exposure. A profitable quarter in the face of meaningful non-hurricane losses could reassure investors of Allstate's earnings stability," said Shanker.
"The devastation wrought by this tragic event likely will cause Allstate $100mm $300mm in pre-tax losses. A significant portion of this amount is already captured in the "cat load" we set before 2Q13 began. We are revising down 2013 EPS by $0.25, but note that additional weather activity would cause us to revisit this preliminary estimate," he added.
For an analyst ratings summary and ratings history on Allstate (NYSE: ALL) click here. For more ratings news on Allstate click here.
Shares of Allstate closed at $49.08 yesterday.
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