Street Calls of the Week
Investing.com - BMO Capital has raised its price target on Progressive Corp. (NYSE:PGR) to $252.00 from $250.00 while maintaining a Market Perform rating on the insurance company’s stock. According to InvestingPro data, 16 analysts have recently revised their earnings estimates upward, and the company appears undervalued based on Fair Value analysis.
The firm’s analyst adjusted earnings per share (EPS) estimates for 2026 and 2027, increasing them by approximately 1% each to $13.12 and $14.98, respectively. These adjustments reflect a modestly improved outlook for both net investment income and premium growth compared to BMO’s previous below-consensus estimates.
BMO Capital noted that its 2025 EPS estimate remains unchanged, excluding Progressive’s August earnings beat. The firm has embedded a lower near-term underlying loss ratio in its model, which is offset by a higher Direct Auto expense ratio.
The price target adjustment represents a modest increase of $2.00, or less than 1%, from the previous target of $250.00 set by the investment firm.
Progressive Corp., headquartered in Mayfield Village, Ohio, is one of the largest providers of auto insurance in the United States, also offering commercial auto insurance and other property-casualty insurance products. The company, with a market capitalization of $141.7 billion, has demonstrated strong performance with 21.5% revenue growth over the last twelve months and maintains an attractive P/E ratio of 13.6, significantly below industry averages.
In other recent news, Progressive Corporation reported a 30% increase in net income for August 2025, reaching $1.22 billion compared to $935 million in the same month last year. The company’s net premiums written rose 11% to $7.2 billion, while net premiums earned increased 18% to $7.04 billion. Earnings per share available to common shareholders grew to $2.07, up from $1.59 in August 2024. BMO Capital downgraded Progressive’s stock rating from Outperform to Market Perform, citing competitive concerns, and lowered its price target to $250.00. Conversely, BofA Securities raised its price target for Progressive to $347.00, maintaining a Buy rating, based on an updated forecast for a year-end special dividend. BMO Capital also adjusted its price target earlier to $279.00, noting strong auto margins but weaker premium growth in Home and Commercial Lines. Additionally, Keefe, Bruyette & Woods reiterated its Market Perform rating with a $268.00 price target, while raising its earnings per share estimates for the upcoming years. These developments highlight the mixed analyst perspectives on Progressive’s financial outlook.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.