Morgan Stanley ‘incrementally positive’ on Progressive after February report

Progressive’s (PGR) auto policies in force growth remained strong in February, though net written premiums were temporarily undercut by calendar effects, with underlying results largely in line with expectations, Morgan Stanley tells investors in a research note. Progressive’s durable growth, stronger-than-expected customer retention, and solid underwriting profit suggest a more positive fundamental outlook, while the competitive landscape may become more challenging for peers, the firm says. Morgan Stanley maintains an Underweight rating and $205 price target on the stock.