Morgan Stanley Retains Hold on Progressive (PGR), Lowers PT on Softer Growth Estimates

The Progressive Corp. (NYSE:PGR) is one of the best value stocks in Goldman Sachs’ portfolio. In a September 22 update, Morgan Stanley analyst Bob Huang marginally lowered the price target on the stock to $265 from $267, but maintained his Hold rating.

The analyst’s change to the price target follows the company’s release of its August monthly performance results. Huang has lowered his assumptions for the 2025 total combined ratio and modestly lowered premium growth forecasts for 2026 and 2027.

For the month of August, the company reported a 2.4% year-over-year decline in the combined ratio, which came in at 83.1%. The combined ratio is a key profitability metric for insurers, showing how efficiently they run their core underwriting operations.

However, BofA analyst Joshua Shanker maintained his positive stance in a September 17 report, with a Buy rating and a price target of $343, down from $347 previously. While the analyst lowered his EPS estimates after factoring in the monthly results, he commended the company’s margins and argued that his EPS estimates might be conservative.

The Progressive Corp. (NYSE:PGR) is one of the largest auto insurers in the U.S., offering insurance products across personal and commercial lines.

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Disclosure: None. This article is originally published at Insider Monkey.