Progressive stock price target lowered to $247 by BMO Capital

Investing.com - BMO Capital has lowered its price target on Progressive Corp. (NYSE:PGR) to $247.00 from $252.00 while maintaining a Market Perform rating. According to InvestingPro data, Progressive currently trades at $226.50, with a P/E ratio of 13.2 and strong revenue growth of 18.4% over the last twelve months.

The firm cited "soft" pricing-power conditions that continue to persist in the insurance industry due to excess profit margins. BMO Capital noted that this downward pricing-power trendline, approximately 3%, has not been fully reflected in sell-side estimates.

Progressive’s ability to lower prices more than competitors while maintaining strong auto profitability was highlighted in the analysis. The company reported a 66.6% core loss ratio in the past month, which compares favorably to its approximately 72% longer-term average.

BMO Capital indicated that Progressive’s pricing advantage is particularly pronounced due to its significant market share in Florida.

The price target reduction follows BMO Capital’s recent downgrade of Progressive stock, with the firm explaining that the pricing-power dynamics were a key factor in its decision to lower its rating.

In other recent news, Progressive Corporation reported a significant 30% increase in net income for August 2025, totaling $1.22 billion, up from $935 million in the same month last year. The company’s net premiums written rose by 11% to $7.2 billion, and net premiums earned increased by 18% to $7.04 billion. Earnings per share available to common shareholders also saw growth, reaching $2.07 compared to $1.59 in August 2024. Keefe, Bruyette & Woods responded to these earnings by raising their price target for Progressive to $270, citing an upward revision in their earnings per share estimates for the coming years. BMO Capital also adjusted its price target to $252, reflecting a slightly improved outlook for net investment income and premium growth. However, Wells Fargo lowered its price target to $246, pointing to slowing personal auto policy growth and a weaker underlying loss ratio. Similarly, Evercore ISI reduced its price target to $250, highlighting concerns over increased competition in the auto insurance market and a decrease in premium per policy. These developments provide a varied perspective on Progressive’s current financial standing and market challenges.

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