Allstate price target raised to $144 from $136 at BofA

BofA analyst Joshua Shanker raised the firm’s price target on Allstate (ALL) to $144 from $136 and keeps a Buy rating on the shares. Allstate competitors Progressive (PGR) and Travelers (TRV) have each reported underlying loss ratio improvement with their respective Q3 personal auto results, notes the analyst, who argues that these Q3 early reporters “suggest Allstate may turn the corner” with its underlying loss ratio. Given a combination of the pace at which auto margins are improving at peers and the move in 5-Year U.S. Treasury yields, BofA is increasing auto underwriting margins and investment yields and increasing its EPS estimates.