Favorable Outlook for Progressive Amidst Recent Share Price Pullback and Conservative EPS Estimates

Bob Huang, an analyst from Morgan Stanley, maintained the Buy rating on Progressive (PGR – Research Report). The associated price target remains the same with $330.00.

Bob Huang’s rating is based on a combination of factors that suggest a favorable outlook for Progressive. Despite recent investor concerns about peak growth and margins, the recent pullback in share price has made the setup for Progressive’s upcoming earnings report more attractive. The stock has declined by approximately 5% since the last report, which presents a less challenging environment for the company.
Huang believes that the current consensus estimates for Progressive’s earnings per share (EPS) in 2026 are too conservative compared to his own higher estimate. As the company continues to deliver strong monthly results, with mid-teens growth and a combined ratio in the high 80s to low 90s, he anticipates that Progressive’s valuation multiples will improve. Additionally, Progressive’s ability to maintain profitability and flexibility in pricing, even amidst increased competition and inflationary pressures, positions it well for future growth.

In another report released on June 12, Bank of America Securities also reiterated a Buy rating on the stock with a $333.00 price target.

PGR’s price has also changed slightly for the past six months – from $251.800 to $267.850, which is a 6.37% increase.