William Blair analyst Adam Klauber has maintained their bullish stance on PGR stock, giving a Buy rating yesterday.
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Adam Klauber has given his Buy rating due to a combination of factors that highlight Progressive’s promising long-term prospects. Despite the normalization in the auto cycle, Progressive is positioned to benefit from expanding growth drivers and an increasing total addressable market (TAM), which are expected to result in superior top-line growth. The company’s competitive edge, rooted in a low-cost platform and advanced technology, is enabling it to capture a larger share of the bundled auto/home and commercial insurance markets.
Moreover, premium growth is anticipated to stabilize in the low-double-digit range, which is favorable when compared to the historical average. Despite recent market volatility, the stock is expected to perform well over the next year and beyond, driven by the potential for sustained double-digit growth in both top line and earnings. The current stock price, trading at 14 times the projected 2026 operating EPS, does not seem to fully account for the company’s strong long-term potential. Key catalysts for this outlook include the stabilization of premium growth rates and potential upward revisions to 2026 earnings estimates.
According to TipRanks, Klauber is a 4-star analyst with an average return of 6.5% and a 48.44% success rate. Klauber covers the Financial sector, focusing on stocks such as Progressive, Allstate, and Aon.
In another report released yesterday, Raymond James also reiterated a Buy rating on the stock with a $305.00 price target.