Deutsche Bank analyst Joshua Shanker downgraded Allstate Corp. to "hold" from "buy," saying the company is likely to face resistance as it looks to further strengthen its earnings results through policy growth.

After reporting second-quarter EPS that was a "significant" beat on estimates, Shanker said Allstate will likely go through some adjustments that will bring the consensus figures closer to Deutsche Bank's estimates.

Shanker revised his full-year 2017 EPS estimate to $7.05 from $6.25 and his 2018 EPS estimate to $7.45 from $7.50. He also increased the his target price on the stock to $96 from $90, based on the 7% rise in property and casualty stock prices over the last quarter, as well as a roll forward on his valuation multiple.