EverQuote downgraded to Perform Oppenheimer following Progressive miss

As previously reported, Oppenheimer analyst Jed Kelly downgraded EverQuote (EVER) to Perform from Outperform and removed the firm’s $22 price target on the shares until it can better assess how higher losses at Progressive (PGR) will impact the company’s results. EverQuote traded down 30% last Friday after Progressive, its largest advertiser, reported a March combined ratio of 106.3%, materially above management’s 96% target. Progressive’s higher than expected loss is causing concern with investors that the insurance industry is still not underwriting auto policies at a consistent level of profitability to lean back into digital advertising, Oppenheimer says.