On Friday, Evercore ISI adjusted its outlook on Progressive Corp. (NYSE: NYSE:PGR), increasing the stock's stock price target to $215 from the previous target of $203. The firm sustained its Outperform rating on the shares.
The revision follows an assessment of Progressive's performance, particularly noting improvements in the auto insurance underwriting and a modest reduction in expense ratio. These factors have led to an increase in earnings per share (EPS) estimates by 3-4%.
The analyst from Evercore ISI highlighted the company's stronger auto underwriting as a key driver of confidence in Progressive's growth prospects. This confidence persists despite a recent performance miss. The firm also anticipates Progressive's marketing efficiency to benefit from the current hard market conditions.
Progressive is expected to increase advertising spending starting in March and continuing throughout the year. This strategy is anticipated to support the growth of policies in force (PIF), an important metric for the insurer.
The new price target of $215 reflects Evercore ISI's updated EPS estimates, taking into account the company's recent performance and future growth strategies. The analyst's commentary indicates a positive outlook on Progressive's ability to maintain its growth trajectory.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.