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Investing.com - Evercore ISI reiterated an In Line rating on Progressive Corp. (NYSE:PGR) with a $230.00 price target. The firm assessed the company’s first-quarter results as mixed, with underwriting loss ratio and policies in force misses balanced by stronger net premiums written growth in auto insurance. The stock currently trades at $201.74, near its 52-week low of $192.02.
The research firm noted concerns about the loss ratio normalizing faster than anticipated, citing evidence from March data. Evercore ISI stated it did not want to overreact to one month of results, which limited adjustments to estimates.
Property policies in force declined year-over-year in the first quarter. The firm expressed hope that Progressive will increase bundling efforts throughout 2026, which could stabilize net premiums written growth at high single-digit percentages.
Evercore ISI reduced its estimates by 0.5% to reflect a slightly worse auto loss ratio. The firm noted that Progressive has increased property reinsurance coverage in 2026.
The research firm estimated Progressive trades at approximately 14 times normalized earnings, a discount to the 16 times long-term average. The current P/E ratio stands at 10.48 with a PEG ratio of just 0.3, suggesting the stock is trading at a low price relative to near-term earnings growth. According to InvestingPro analysis, Progressive appears undervalued based on Fair Value metrics, placing it among stocks on the Most Undervalued list. Evercore ISI attributed the discount to market concerns about autonomous vehicle impact on terminal growth, though the firm’s automotive team projects autonomous vehicles at only 1% of U.S. miles driven in 2035.
In other recent news, The Progressive Corporation reported a 10% increase in net income for the first quarter, reaching $2.82 billion, compared to $2.57 billion in the previous year. Net premiums written also rose by 6% to $23.64 billion from $22.21 billion. Earnings per share for common shareholders increased to $4.80 from $4.37, marking a 10% gain. BofA Securities raised its price target on Progressive to $312, maintaining a Buy rating, noting that while March results were slightly below their forecast, they were in line with or ahead of consensus estimates. Goldman Sachs also reiterated a Buy rating with a $216 price target, highlighting that Progressive’s March operating earnings per share of $1.51 exceeded their estimate and consensus expectations. Keefe, Bruyette & Woods adjusted its price target to $208, maintaining a Market Perform rating, while raising its 2026 earnings estimate due to expectations for faster premium and investment income growth. Meanwhile, Morgan Stanley reiterated an Underweight rating with a $190 price target, citing steady results and elevated net written premium growth due to calendar adjustments. These developments reflect Progressive’s continued financial performance and varied analyst perspectives.
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