Analyst Michael Zaremski from BMO Capital maintained a Buy rating on Progressive (PGR – Research Report) and keeping the price target at $288.00.
Michael Zaremski has given his Buy rating due to a combination of factors influencing Progressive’s current and future performance. The company has demonstrated strong growth key performance indicators, maintaining robust application and conversion rates despite heightened competition. This resilience is supported by Progressive’s strategic increase in advertising expenditure, which positions it well against competitors like GEICO, whose advertising spend is currently below historical levels.
Furthermore, Progressive’s favorable reserve developments in personal auto insurance, particularly in Florida, contribute positively to its financial outlook. Despite potential challenges from tariffs and rising loss costs, the company’s ability to manage frequency and severity of claims effectively, along with its strong valuation metrics, underpins the optimistic growth projections. These elements collectively justify the Buy rating, as Progressive is expected to continue outperforming in the personal auto insurance market.
In another report released on April 29, Bank of America Securities also upgraded the stock to a Buy with a $316.00 price target.
PGR’s price has also changed moderately for the past six months – from $248.070 to $282.160, which is a 13.74% increase.