Street Calls of the Week
Investing.com - Keefe, Bruyette & Woods raised its price target on Progressive Corp. (NYSE:PGR) to $270.00 from $268.00 while maintaining a Market Perform rating.
The price target increase follows Progressive’s August 2025 earnings report, which prompted KBW to revise its earnings per share estimates upward for the coming years.
KBW now forecasts EPS of $18.15 for 2025, $15.40 for 2026, and $16.40 for 2027, up from previous estimates of $16.60, $14.95, and $15.95, respectively. These adjustments reflect August’s outperformance, expectations for higher net investment income, and lower anticipated catastrophe losses for September 2025.
The firm’s analysis indicates these positive factors will be partially offset by slower premium growth and higher expense ratios at Progressive.
KBW expects Progressive to face near-term pressure on core loss ratios due to low earned rate increases and decelerating policy-in-force growth, as competitors’ rate increases moderate and reduce the shopping behavior that has historically benefited Progressive’s competitive pricing.
In other recent news, Progressive Corporation reported a significant 30% increase in net income for August 2025, reaching $1.22 billion compared to $935 million in the same month last year. 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 from Outperform to Market Perform, citing competitive concerns, and adjusted its price target to $250.00. Conversely, BofA Securities increased its price target for Progressive to $347.00, driven by an updated forecast for a $10 per share year-end special dividend. Additionally, BMO Capital recently raised its price target to $252.00 from $250.00, reflecting a modestly improved outlook for net investment income and premium growth. These developments highlight the mixed analyst perspectives on Progressive’s financial outlook.
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