UPDATE: Nomura Raises PT on Progressive Following November Results Report

In a report published Thursday, Nomura analyst Clifford Gallant reiterated a Reduce rating on

, and raised the price target from $20.00 to $21.00. In the report, Nomura noted, “PGR announced a $1.00 special dividend (payable Feb 7) that will be paid in addition to the as-planned annual variable dividend. While a dividend had been speculated upon, we view the announcement as a positive surprise. We view November operating EPS of $0.11 as light. Premiums were up 6% (we expected 5%) with PIF up 2% (in line) in personal lines. Reflecting our growth and underwriting profit concerns, we are trimming our EPS estimates. Given the downside to our target, we continue to recommend caution on the shares with a Reduce rating.” The Progressive Corporation closed on Wednesday at $27.00.