Morgan Stanley analyst Bob Huang downgraded Progressive (PGR) to Underweight from Equal Weight with a price target of $114, down from $135. The stock’s current premium to key competitor Allstate (ALL) looks unsustainable over the medium term given Progressive’s sales top-line and earnings growth and the potential for additional prior-year development charges in 2023, the analyst tells investors in a research note. The firm believes Progressive’s risks are not fully priced in and sees more attractive risk adjusted return potential in other names, including Arch Capital and Everest Group.
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Read More on PGR:
- Progressive price target lowered to $120 from $140 at BMO Capital
- Progressive price target lowered to $156 from $165 at Jefferies
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- Progressive price target lowered to $140 from $145 at Raymond James
- Progressive upgraded to Overweight from Neutral at JPMorgan
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