Buy the dip in Allstate - KBW

|About: Allstate Corporation (ALL)|By:, SA News Editor

Allstate (NYSE:ALL) was off sharply yesterday following the announcement of its purchase of SquareTrade, but KBW analyst Meyer Shields says it's a buying opportunity, and lifts his price target on the Outperform-rated stock to $77 from $74 (12% upside from yesterday's close).

Though "a little nervous" about the purchase price and execution, Shields is "cautiously optimistic" about the cross-selling outlook as the deal diversifies Allstate's product offerings.

Wells Fargo's Elyse Greenspan (who also rates ALL an Outperform) says revenue from SquareTrade has the potential to compensate from lost sales on the shift to driverless cars.

Source: Bloombeg