William Blair analyst Adam Klauber has maintained their bullish stance on PGR stock, giving a Buy rating yesterday.
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Adam Klauber has given his Buy rating due to a combination of factors including Progressive’s robust financial performance in the second quarter. The company reported an operating EPS of $4.88, surpassing the consensus estimate of $4.45, driven by a strong underlying loss ratio and minimal impact from catastrophic weather events. This performance indicates a positive trajectory towards achieving an EPS of approximately $17.40 by 2025, which exceeds the current consensus estimate of $16.64.
Additionally, Progressive’s core auto loss ratio remains favorable at 67.5%, and the company has demonstrated impressive personal auto policy-in-force growth of 19%. Despite potential pricing pressures, net premiums written growth rebounded to 15% in June. The company’s combined ratio of 87% in June, which is significantly below its target of 96%, further supports the optimistic outlook. These factors collectively suggest that Progressive is well-positioned for continued success, justifying the Buy rating.
Klauber covers the Financial sector, focusing on stocks such as Progressive, Allstate, and Aon. According to TipRanks, Klauber has an average return of 6.6% and a 49.61% success rate on recommended stocks.