Progressive downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley analyst Bob Huang downgraded Progressive (PGR) to Equal Weight from Overweight with a price target of $290, down from $330. The firm says the drivers of its prior bullish thesis are dissipating. Amid increasing competition, the thesis on Progressive should now shift to managing peak margin and growth, the analyst tells investors in a research note. Morgan Stanley sees intensifying industry competition and potential pressure on Progressive’s valuation due to exiting a peak growth and margin environment.