The Dividend Daily

MKM Partners announced on Wednesday that they have lowered their Q4 estimates for The Allstate Corporation(ALL).

The firm reported that they have cut estimates for ALL’s fourth quarter earnings to 30 cents per share. The company accumulated $1.08 billion in losses last month from Hurricane Sandy, as well at four other events.

Although Allstate reported such significant losses, the firm has reaffirmed its “Buy” rating as well as its $50 price target for the company. This price target suggests a 19% increase over the stock’s current price of $40.55. The “Buy” rating is a result of the “homeowners improvement story.”

An analyst from the firm commented, “our new fourth quarter estimate assumes catastrophe losses of $1.24 billion that include roughly $160 million of catastrophe losses for November and December.”

Allstate shares were up 35 cents, or 0.87% during Wednesday afternoon trading. The stock is up 45.05% YTD.

The Bottom Line
Shares of Allstate (ALL) have a 2.18% dividend yield, based on last night’s closing stock price of $40.42. The stock has technical support in the $37-$38 price area. If the shares can firm up, we see overhead resistance around the $42-$43 price levels.

The Allstate Corporation(ALL) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.