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Daily backgrounder

FBR Capital raises
Allstate price target

Allstate Corp., the largest publicly traded U.S. home and auto insurer with operations in Summit County, had its price target raised by FBR Capital Markets Corp. on increases in the value of its investments.

Allstate's book value per share could rise about 25 percent to $28.39 in the second quarter and could reach $33.52 by the end of 2010, analyst Bijan Moazami said in a note to clients about the Northbrook, Ill.-based company. Moazami raised the price target to $40 from $36.

''With the financial markets rallying and spreads narrowing since the market nadir on March 9, 2009, equity and fixed-income investments are simply worth more,'' Moazami wrote.

The insurer last month posted its third straight loss on investment writedowns and declines in private equity and hedge-fund holdings. Allstate set aside $224 million in the first quarter at its life-insurance unit after stock declines raised the cost of meeting obligations to customers that have been promised minimum returns on retirement products.

Allstate fell 10 cents to $24.16 Friday. Shares have fallen 48 percent in the past year.

Calif. autos to get
sun-reflecting glass

California air regulators voted unanimously for a mandate requiring auto manufacturers to include sun-reflecting glass on all vehicles sold within the state by 2014.

The move by the California Air Resources Board was intended to keep cars, pickup trucks and sport utility vehicles cooler during hot weather, reducing the use of air conditioning.
Google CEO says
new Bing isn't threat

Google Inc. Chief Executive Officer Eric Schmidt said he welcomes Microsoft Corp.'s new Bing search engine as his company benefits from its rival's ''continual re-entry into this market.''

Bing, unveiled May 28 and released the following week, increased its market share to 12.1 percent in the week ended June 12, according to market research firm ComScore Inc. Bing is Microsoft's latest attempt to compete with Google, owner of the world's most popular search engine, in this lucrative market.
GE plans to open
technology center

General Electric Co. says it will open a manufacturing technology center in Michigan that will eventually employ more than 1,100 workers.

The Advanced Manufacturing and Software Technology Center will include a GE research and development facility with scientists and engineers who will develop manufacturing technologies for GE's renewable energy, aircraft engine, gas turbine and other products.

The center, which is expected to open later this year in Van Buren Township, Michigan, also will work on software development, networking and other services.
GM can't stay on top
of orders for Camaro

General Motors, rushing to emerge from bankruptcy as a profitable automaker, can't keep up with demand for the 2010 Chevrolet Camaro sports car.

GM has filled about half the 25,000 orders taken for the Camaro, said Terry Rhadigan, a GM spokesman. Dealers, working through GM's 42 percent U.S. sales decline in the first five months of the year, report that the vehicles they have received are selling within days of arrival.
Some airline fares
may rise again soon

If you've been waiting for the lowest possible airfare for a trip this summer, it might be time to book.

Fares have dropped for months while travelers held off buying tickets because they were afraid of losing a job or worried about affording even a scaled-back vacation. But with July 4 fast approaching and jet fuel prices rising, some fares could be set to climb again.

Rick Seaney, CEO of FareCompare.com, said it looks like airlines are trying to halt the fare slide, with recent hikes of $10 and $20 round-trip. Still, minor increases in the last two weeks ''have by no means completely curtailed the flood of cheap airline'' tickets from the first half of the year. In fact, AirTran recently put out fares with new market lows.

FBR Capital raises
Allstate price target

Get the full article here.


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