Allstate shares could be due to extend rally: report
NEW YORK (Reuters) - Allstate Corp. (ALL.N: Quote, Profile, Research) shares could be due to extend a recent rally, possibly climbing by another 60 percent, after the insurer cut back its risk and focused on auto and homeowners' policies, according to the latest issue of Barron's.
The financial weekly says analyst William Yankus of Fox-Pitt Kelton has a price target of $40 a share on the insurance company, well above its current value of about $25 a share.
"All told, Allstate figures to make a lot of money for years to come, even in the face of any erosion in its market share," the Barron's article states. "And that will no doubt redound to the benefit of the company's shareholders -- especially at the current price level of the stock."
Shares of Allstate, hurt by the impact of the credit crisis on shareholder net worth, fell to below $14 a share in March, from nearly $60 a share in late 2007.
Despite the recent rebound, the stock "at current levels in the mid-20s, seems cheap," Barron's writes.
(Reporting by Paul Thomasch; Editing by Diane Craft)
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