UPDATE: Credit Suisse Downgrades Progressive from Outperform to Neutral
Credit Suisse downgraded Progressive (NYSE: PGR) from an Outperform to a Neutral rating and lowered its price target from $25 to $18.
Credit Suisse noted, “We are downgrading shares of PGR to Neutral (from Outperform) and lowering our target price to $18 (from $25). Our former "Outperform" thesis was incorrect as it rested on (1) PGR's main competitor Geico meaningfully increasing rates after its worst financial performance in a decade and (2) margin cushion given our expectation for auto rates to harden, combined with used car price increases slowing as new car sales accelerated.”
Progressive closed at $19.57 on Friday.
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