Morgan Stanley analyst Bob Huang maintained a Hold rating on Progressive today and set a price target of $265.00.
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Bob Huang has given his Hold rating due to a combination of factors impacting Progressive’s performance. The primary concern is the slowdown in personal auto policy growth, which is expected to miss market expectations. This deceleration is compounded by a challenging pricing environment where rates are not keeping pace with rising loss costs.
Despite these challenges, Progressive remains well-positioned compared to its peers, thanks to its strong profitability and effective risk management. The company’s underwriting excellence and ability to manage new business strain provide some support to its overall performance. However, the potential for margin deterioration and slower growth make the investment thesis less compelling, justifying the Hold rating.
Huang covers the Financial sector, focusing on stocks such as Progressive, Accelerant Holdings Class A, and Aon. According to TipRanks, Huang has an average return of 0.0% and a 56.76% success rate on recommended stocks.
In another report released on October 8, Wells Fargo also maintained a Hold rating on the stock with a $266.00 price target.