Progressive downgraded to Underweight from Equal Weight at Morgan Stanley

Morgan Stanley analyst Bob Huang downgraded Progressive (PGR) to Underweight from Equal Weight with a price target of $214, down from $265. The firm finds Progressive’s bull case less visible when stripping out Florida. Progressive is entering into a softer part of the pricing cycle, which is likely to compress valuation multiples further, the analyst tells investors in a research note. Morgan Stanley believes the cyclical nature of the business implies earnings declines in 2026 and 2027.