Morgan Stanley analyst Bob Huang maintained a Buy rating on Progressive (PGR – Research Report) today and set a price target of $320.00.
Bob Huang has given his Buy rating due to a combination of factors that highlight Progressive’s strong financial performance and future growth potential. The company’s current net written premium growth, total company combined ratio, and operating return on equity (ROE) are significantly better than historical averages, suggesting a robust earnings power. Despite concerns from bearish investors about over-earning, the current economic environment, with less pressure from low interest rates, supports a higher than average ROE.
Moreover, Progressive is expected to achieve a return on equity of over 24% for 2026 and 2027, bolstered by improved investment yields. The company’s ability to maintain a steady combined ratio amidst high business strain and macroeconomic uncertainties indicates strong management of underwriting profit and growth. With a clear path to achieving $18 earnings per share by 2026, Bob Huang believes that Progressive is well-positioned to outperform its peers, justifying the Buy rating.
In another report released yesterday, Bank of America Securities also upgraded the stock to a Buy with a $312.00 price target.
Based on the recent corporate insider activity of 108 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.