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Investing.com - BofA Securities has raised its price target on Progressive Corp. (NYSE:PGR) to $344.00 from $339.00 while maintaining a Buy rating on the stock. According to InvestingPro analysis, Progressive is currently trading below its Fair Value, with 5 analysts recently revising their earnings estimates upward.
The price target increase reflects an expansion in the year-ahead (2026) S&P 500 P/E multiple to 21.3x from 21x, applied to BofA’s underwriting margin-normalized 2027 forecast of $16.16 per share, slightly up from the previous $16.13.
BofA has also increased its 2025 EPS forecast for Progressive, incorporating the company’s actual July 2025 earnings beat into its full-year projections, while 2026-2027 updates are minimal at just two cents each on an $18-20 base.
The firm noted that modest changes in policy count and investment yield generally offset each other in its longer-term forecasts for the insurance company.
BofA Securities views current market conditions as presenting "an unusually attractive entry point" for investors due to intra-market and intra-sector rotation, supporting its continued Buy rating on Progressive shares.
In other recent news, Progressive Corporation reported its second quarter earnings for 2025, which exceeded analyst expectations. The company posted earnings per share of $5.40, surpassing the anticipated $4.36, representing a 23.85% surprise. However, Progressive’s revenue for the quarter was $20.08 billion, falling short of the projected $20.48 billion. Barclays (LON:BARC) adjusted its price target for Progressive, lowering it from $287.00 to $281.00, while maintaining an Equalweight rating. This adjustment was based on valuation concerns, noting that the company trades at a price-to-earnings ratio below its 10-year average. Additionally, Progressive declared a quarterly dividend of $0.10 per share, payable on October 10, 2025, to shareholders recorded by October 2, 2025. These developments reflect ongoing investor interest in Progressive’s financial performance and strategic direction.
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