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Morgan Stanley Sees Solid 3Q Underwriting For The Progressive Corporation


In a report published Monday, Morgan Stanley analyst Kai Pan reiterated an Underweight rating and $23.00 price target on The Progressive Corporation (NYSE: PGR).

In the report, Morgan Stanley noted, “PGR is a pure play in personal auto with a large footprint in the fast growing direct segment. At 14x 2015e EPS and 2.1x Book, PGR's premium valuation implies superior EPS growth & returns. However, PGR EPS growth has been lackluster the last 3/5/10 years while ROE has declined from 20%+ to 15%. Increasing price competition in personal auto marketplace and limited EPS growth trajectory in 2014-16e underpin our Underweight recommendation. We are converting our $22 base case to a price target of $23 (1.8x 3Q15e BV, 13x 2015e EPS) offering a risk-return skewed to the downside.”

The Progressive Corporation closed on Friday at $25.00.

Latest Ratings for PGR

Mar 2019Credit SuisseMaintainsOutperformOutperform
Feb 2019CitigroupMaintainsNeutralNeutral
Jan 2019BarclaysUpgradesUnderweightOverweight

View More Analyst Ratings for PGR
View the Latest Analyst Ratings

Posted-In: Kai Pan Morgan StanleyAnalyst Color Reiteration Analyst Ratings


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