Deutsche Bank Downgrades Progressive Corp. (PGR) to Sell; Revenues & Margins Appear To Be Slowing

July 2, 2012 7:05 AM EDT
Get Alerts PGR Hot Sheet
Price: $36.25 --0%

Rating Summary:
    7 Buy, 12 Hold, 5 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Deutsche Bank downgraded Progressive Corp. (NYSE: PGR) from Hold to Sell with a price target of $17.00 (from $19.00).

Deutsche analyst said, "As Progressive expands it Snapshot initiative, its already formidable underwriting skills are improving, and the company seems poised to be able to maintain it target of a 96% combined ratio, where it is today. However, that will also mean the avenues to margin expansion become few, and revenue does not appear to be growing quickly enough to justify the price-to-earnings multiple in excess of the market."

For an analyst ratings summary and ratings history on Progressive Corp. click here. For more ratings news on Progressive Corp. click here.

Shares of Progressive Corp. closed at $20.83 yesterday.

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