William Blair analyst Adam Klauber has maintained their bullish stance on PGR stock, giving a Buy rating on June 13.
Don’t Miss TipRanks’ Half-Year Sale
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Adam Klauber has given his Buy rating due to a combination of factors that highlight Progressive’s strong financial performance and potential for future growth. The company’s May results were notably positive, with earnings per share (EPS) reaching $1.53, indicating a promising trajectory towards an EPS of approximately $16.80 by 2025, surpassing the current consensus of $16.09. This optimism is further supported by the core auto loss ratio, which improved to 66%, a 2% decrease from the previous year, alongside a 20% growth in personal auto policies in force (PIF).
Despite a slowdown in net premiums written (NPW) growth to 11% due to pricing pressures, Progressive’s overall financial health remains robust, evidenced by a combined ratio of 87% in May, significantly lower than the previous year’s figure and well below the company’s target. The total PIF also increased by 16%, reinforcing the potential for continued success. While short-term challenges such as peaking growth and weather conditions may impact the stock, the substantial earnings potential for 2025 and beyond suggests a favorable outlook, justifying the Buy rating.
Klauber covers the Financial sector, focusing on stocks such as Progressive, Baldwin Insurance Group, and TWFG, Inc. Class A. According to TipRanks, Klauber has an average return of 7.6% and a 49.21% success rate on recommended stocks.
In another report released on June 13, Morgan Stanley also maintained a Buy rating on the stock with a $330.00 price target.