Michael Zaremski, an analyst from BMO Capital, maintained the Buy rating on Progressive (PGR – Research Report). The associated price target remains the same with $288.00.
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.
Michael Zaremski has given his Buy rating due to a combination of factors that highlight Progressive’s strong financial performance and market positioning. Despite a slight decline in pricing power, Progressive’s underlying margins have remained robust, surpassing expectations. The company’s expense ratio has improved, and its organic growth in policies in force (PIF) has exceeded market expectations, indicating strong operational efficiency.
Additionally, Zaremski notes that Progressive’s revenue growth trajectory remains solid, with historical growth rates of 11-12% and projections for mid-teens growth in 2025. Compared to the S&P 500, Progressive’s valuation metrics suggest it is trading at a discount on a cap-weighted basis, while slightly above on an equal-weighted basis. This relative valuation, combined with the company’s ability to manage costs effectively and sustain growth, supports the Buy rating.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a $321.00 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.