Deutsche Bank Downgrades Progressive Corp. (PGR) to Hold; Lower EPS Outlook
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Price: $205.30 -2.05%
Rating Summary:
13 Buy, 22 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 21 | New: 20
Rating Summary:
13 Buy, 22 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 21 | New: 20
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Deutsche Bank downgraded Progressive Corp. (NYSE: PGR) from Buy to Hold, price target lowered to $19.00.
Deutsche analyst says, "Combined ratio appear to be approaching a run-rate 96%, which means lower-than-typical underwriting margins. If Progressive's policycount were growing faster than mid-single digits, such margins would be more understandable. However, with growth lackluster, there does not seem to be any catalyst to growth in the near future, and Progressive's self-professed "Gainshare" factor of 1.03 implies a lack optimism from company management."
"Based on rising longer-term margin trends and higher-than-expected loss ratios in October 2011 results. we are reducing our EPS estimates to $0.30 from $0.38 for 4Q11 and to $1.45 from $1.75 for 2012. We are also introducing a 2013 EPS estimate of $1.70. We are also lowering our growth 2012 expectations to 4.7% for $14.2 billion in net written personal auto premium."
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 $19.06 yesterday.
Deutsche analyst says, "Combined ratio appear to be approaching a run-rate 96%, which means lower-than-typical underwriting margins. If Progressive's policycount were growing faster than mid-single digits, such margins would be more understandable. However, with growth lackluster, there does not seem to be any catalyst to growth in the near future, and Progressive's self-professed "Gainshare" factor of 1.03 implies a lack optimism from company management."
"Based on rising longer-term margin trends and higher-than-expected loss ratios in October 2011 results. we are reducing our EPS estimates to $0.30 from $0.38 for 4Q11 and to $1.45 from $1.75 for 2012. We are also introducing a 2013 EPS estimate of $1.70. We are also lowering our growth 2012 expectations to 4.7% for $14.2 billion in net written personal auto premium."
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 $19.06 yesterday.
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