Buy Rating for Progressive’s Stock: A Strong Long-Term Investment with Compelling Growth Prospects

Progressive (PGR – Research Report), the Financial sector company, was revisited by a Wall Street analyst today. Analyst Bob Huang from Morgan Stanley maintained a Buy rating on the stock and has a $228.00 price target.

Bob Huang has given his Buy rating due to a combination of factors that support the notion that Progressive’s stock is a strong investment for the long term. Notably, the current valuation of Progressive at around 19 times the 2025 consensus earnings per share (EPS) is seen as reasonable, especially when compared to the broader S&P 500 index and historical valuations. Huang acknowledges some investor hesitation based on the price but argues that Progressive’s consistent growth and underwriting profitability make it a compelling secular investment story.
Additionally, Huang identifies three key tailwinds that he believes will bolster Progressive’s share price: the conservative nature of consensus estimates, the company’s positioning for growth that outpaces the market, and the relative valuation compared to the S&P 500. He points out that the current consensus EPS estimate for 2025 is likely understated, especially in light of Progressive’s solid underwriting results in the early part of the year. He also sees potential for Progressive to expand its market share significantly in the next five years, further underscoring his positive outlook on the stock.

According to TipRanks, Huang is a 3-star analyst with an average return of 3.4% and a 68.57% success rate. Huang covers the Financial sector, focusing on stocks such as Allstate, Progressive, and Brighthouse Financial.

In another report released yesterday, Bank of America Securities also assigned a Buy rating to the stock with a $264.00 price target.

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Progressive (PGR) Company Description:

The Progressive Corporation is one of the leading auto insurers in the United States. The company also offers residential property insurance, reinsurance, and other specialty property-casualty insurance and related services. Its Personal Lines business unit covers insurance for personal automobiles, recreational and other vehicles. Under the Commercial Lines division, Progressive writes primary liability and physical damage insurance for automobiles owned by small businesses. Its Property segment offers residential property insurance for homeowners, renters and other property owners.