Progressive, the Financial sector company, was revisited by a Wall Street analyst today. Analyst Joshua Shanker from Bank of America Securities reiterated a Buy rating on the stock and has a $350.00 price target.
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Joshua Shanker has given his Buy rating due to a combination of factors including Progressive’s impressive earnings per share (EPS) revisions and significant capital return potential. Over the past two years, Progressive has experienced the fastest consensus EPS revisions among large-cap U.S.-listed stocks, surpassing even notable tech companies. Despite this, the stock’s year-to-date performance has lagged behind the broader market, suggesting that the market may be underestimating Progressive’s earnings capabilities.
Additionally, Shanker highlights that while growth in net personal auto policy count has slowed, this is largely due to high profitability levels rather than a decline in new business. Progressive’s potential for growth remains strong, supported by initiatives in non-coastal homeowners’ business and direct-to-consumer sales. Furthermore, the company is expected to generate substantial excess capital, estimated at $8 billion annually through 2030, which is likely to be returned to shareholders. This combination of strong growth potential and capital return supports Shanker’s Buy rating and a price objective of $350.
Shanker covers the Financial sector, focusing on stocks such as Progressive, Chubb, and Renaissancere Holdings. According to TipRanks, Shanker has an average return of 8.6% and a 61.87% success rate on recommended stocks.
In another report released on September 19, Raymond James also reiterated a Buy rating on the stock with a $305.00 price target.