Investing.com -- Morgan Stanley raised its earnings estimates for Progressive Corp (NYSE:PGR), citing a stronger underwriting environment and improving margins as new policy strain eases. The brokerage reiterated its Overweight rating and increased its price target to $317 from $307.
Morgan Stanley now expects Progressive to report earnings of $16.60 per share in 2025, up from its prior forecast of $14.81, supported by a near 90% combined ratio.
The brokerage also lifted its 2026 EPS estimate to $17.31 from $16.04.
Progressive added a record 4.2 million new personal auto policies in 2024, which initially pressured margins. However, as these policies mature, Morgan Stanley expects a positive impact on profitability in 2025. The firm also noted that January’s combined ratio was the best in recent memory, particularly in the Agency Auto channel.
“Post January results and 4Q24 industry earnings, Progressive stood out above the rest in terms of growth and profitability. We now see a much more durable underwriting environment that supports a higher EPS growth trajectory,” analyst at Morgan Stanley said.
Related Articles
Morgan Stanley bullish on Progressive, lifts EPS estimate
Itron stock rises on strong Q4 earnings, upbeat guidance
Morocco stocks higher at close of trade; Moroccan All Shares up 0.56%
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.