Progressive, the Financial sector company, was revisited by a Wall Street analyst today. Analyst Andrew Andersen from Jefferies downgraded the rating on the stock to a Hold and gave it a $232.00 price target.
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Andrew Andersen has given his Hold rating due to a combination of factors impacting Progressive’s growth prospects. The personal auto insurance market is becoming more competitive, which is expected to lead to a slower growth environment for Progressive. This increased competition is likely to result in earnings per share (EPS) compression and margin deterioration from their current record highs, although margins are still anticipated to remain above company targets through 2027.
Furthermore, while pricing decreases may support moderate growth in 2026, they are expected to come at the cost of higher loss ratios. The company’s EPS estimates remain above consensus due to stronger earnings reports, but the overall growth and margin advantage that Progressive previously held over its peers is moderating. As a result, Andersen assigns a more normalized price-to-earnings multiple, reflecting prior softer-market periods, and sees limited downside potential with shares trading at approximately 13 times next twelve months’ P/E. This analysis informs the Hold rating, along with a lowered price target of $232.
In another report released on November 5, BMO Capital also maintained a Hold rating on the stock with a $247.00 price target.