Progressive upgraded to Buy from Neutral at Goldman Sachs

Goldman Sachs upgraded Progressive to Buy from Neutral with a price target of $262, up from $230, reflecting a 14% total return opportunity. The analyst sees “stronger and more sustainable” policies in force growth at Progressive than what is reflected in Street estimates, driven by the company’s ability to materially increase advertising spend and by continued strong advertising spend efficiency. Underwriting decisions have been the differentiating factor that helped Progressive restore margins quicker than peers, rather than just pure pricing, the analyst tells investors in a research note.