BMO Capital analyst Michael Zaremski downgraded Progressive to Market Perform from Outperform with a price target of $150, down from $165. The analyst estimates the company’s near-term earnings estimates will need to be further revised downwards with auto inflation "stubbornly persisting" at double-digit rates. In addition, the auto accident frequency trendline is likely to remain above historical levels with increasing legislative adoption of marijuana, persistent distracted driving levels and the aging fleet of vehicles on the roads, the analyst tells investors in a research note. The firm cites the impacts of "higher-for-longer" inflation for the downgrade of Progressive.
Published first on TheFly
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