Progressive price target lowered to $140 from $145 at BMO Capital

BMO Capital lowered the firm’s price target on Progressive to $140 from $145 and keeps a Market Perform rating on the shares. The analyst cites the company’s earnings miss for May driven by the adverse reserve impacts from the Florida legal environment and continued broader inflationary pressures. The firm adds however that growth above consensus levels is likely for Progressive in 2023 as the company’s margins are more than two standard deviations above its historical average relationship versus GEICO, implying a meaningful growth acceleration.