Citigroup Lowers PT for ALL, Downgrades TRV To Hold

The Allstate Corporation ALL is having its price target raised by Citigroup to $35, and is expected to see solid Auto trends coupled with repricing/rundown of the Homeowners and Life book to drive up cash flows and a return to buybacks, Citigroup reports. The Travelers Companies, Inc. TRV has been lowered to Hold by Citigroup, which maintains its $55 price target. Allstate has implemented downward expectations of investors since 1Q2010 due to its inconsistent track record, according to Citigroup, which states that the 33% reduction in 2011 consensus EPS since January 2009 is the highest in its "coverage universe". 2010E has been lowered 17% since January. Allstate has issued a $200M dividend, an optimistic trend regarding capital regeneration, according to Citigroup. FY earnings for Allstate and Travelers remain unchanged at $3.26/$3.80 and $5.55/$5.55 for 2010/2011, respectively. The Allstate Corporation closed yesterday at $29.45 while The Travelers Companies closed yesterday at $50.27.