William Blair analyst Adam Klauber has maintained their bullish stance on PGR stock, giving a Buy rating on March 17.
Adam Klauber has given his Buy rating due to a combination of factors indicating Progressive’s strong financial performance and growth prospects. The company’s February results show a promising trajectory towards achieving over $16 of EPS in 2025, surpassing the market consensus of $15.60. This is supported by a robust monthly EPS of $1.73 and a significant 22% growth in personal auto policies in force (PIF), highlighting strong earnings momentum in the first quarter of 2025.
Additionally, despite the impressive growth in auto PIF, Progressive managed to improve its auto loss ratio to 63%, marking the best monthly result since 2020. Although net premiums written (NPW) growth slowed to 17%, the adjusted growth rate would have been 4% higher on a like-for-like basis due to February 2025 having one less day than the previous year. The company’s combined ratio for February was 83%, a notable improvement from the previous year, suggesting that the $16.07 EPS estimate for 2025, based on a combined ratio of 89%, is achievable and possibly conservative. These factors collectively support Klauber’s optimistic outlook for Progressive’s continued success in 2025.
In another report released on March 17, Piper Sandler also reiterated a Buy rating on the stock with a $315.00 price target.
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