Joshua Shanker, an analyst from Bank of America Securities, reiterated the Buy rating on Progressive (PGR – Research Report). The associated price target was lowered to $318.00.
Joshua Shanker has given his Buy rating due to a combination of factors that highlight Progressive’s strong growth trajectory and favorable market conditions. The company has demonstrated impressive growth in personal auto policy counts, particularly in the latter half of the previous year, achieving the fastest pace of policy count growth since at least 1998. This trend is expected to continue, with forecasts indicating a record net addition of policies in February, showcasing Progressive’s ability to capitalize on seasonal growth opportunities.
Additionally, Progressive’s retention rates and new policy applications have improved compared to the first quarter of 2023, suggesting a robust demand for its offerings. Despite a modest market correction affecting the S&P 500’s consensus P/E multiple, Progressive’s slight increases in EPS and a favorable loss trend environment contribute to a positive outlook. With a price objective set at $318, reflecting healthy upside potential, Shanker maintains a Buy recommendation for Progressive’s stock.
In another report released on March 6, CFRA also maintained a Buy rating on the stock with a $320.00 price target.