Allstate price target raised to $158 from $140 at BMO Capital

BMO Capital raised the firm’s price target on Allstate to $158 from $140 and keeps a Market Perform rating on the shares. The firm is adjusting its valuation model to reflect the company’s announcement that it no longer sells lower earnings multiple market valued life insurance, noting that if and when the sale does transpire, the management will likely use most proceeds to pay down debt and downstream capital to subsidiaries to push down its operating+debt leverage ratios, the analyst tells investors in a research note. BMO adds however that its positive margin thesis is offset by the view that Allstate will rebuild capital with lower buybacks and potentially expensive additional reinsurance.