In a report released yesterday, Joshua Shanker from Bank of America Securities reiterated a Hold rating on Progressive (PGR – Research Report), with a price target of $289.00.
Joshua Shanker has given his Hold rating due to a combination of factors influencing Progressive’s stock. He notes that while some investors are optimistic about high-multiple stocks like Progressive, believing they offer quality in challenging market conditions, he remains cautious about the stock’s valuation, which he believes has peaked. Shanker draws parallels to past market behaviors, suggesting that while Progressive has earned its premium valuation, the current market environment may not favor such high valuations.
Additionally, Shanker highlights the broader market dynamics affecting the insurance sector, including the high trading multiples of insurance brokers and the potential for valuation compression in a recessionary environment. He also points out that while reinsurers have historically outperformed during market downturns, they have not benefited from such a rotation recently. These considerations, along with adjustments for recent market volatility and catastrophe activity, underpin his decision to maintain a Hold rating on Progressive.
In another report released on April 11, Barclays also maintained a Hold rating on the stock with a $297.00 price target.
Based on the recent corporate insider activity of 109 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PGR in relation to earlier this year.