- 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