William Blair analyst Adam Klauber has maintained their bullish stance on PGR stock, giving a Buy rating on November 17.
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Adam Klauber has given his Buy rating due to a combination of factors including Progressive’s strong underlying performance despite recent challenges. The company’s operating earnings per share were slightly below expectations, primarily due to an additional policyholder credit charge related to Florida auto law. However, the underlying loss ratio for both the personal auto business and the total company has improved, remaining well below historical averages, which indicates strong operational efficiency.
Moreover, Progressive’s combined ratio of 90% is significantly better than its target of 96%, suggesting robust underwriting results. This performance, coupled with favorable loss trends, positions the company well for future earnings growth. Although there might be some near-term growth deceleration, the stock is expected to perform strongly by 2026, with earnings momentum likely to provide upside potential. These factors contribute to Klauber’s optimistic outlook and Buy recommendation for Progressive’s stock.
Klauber covers the Financial sector, focusing on stocks such as Progressive, Kinsale Capital Group, and GCM Grosvenor. According to TipRanks, Klauber has an average return of 3.0% and a 47.02% success rate on recommended stocks.
In another report released on November 17, HSBC also upgraded the stock to a Buy with a $259.00 price target.