Deutsche Bank Upgrades Progressive Corp. (PGR) to Hold

Deutsche Bank upgraded Progressive Corp. (NYSE: PGR) from Sell to Hold with a price target of $24.00 (from $20.00).

Analyst Joshua Shanker said, "We are taking up our 2014 and 2015 EPS estimates considerable as our expectation of rising underwriting expenses has not materialized. The trailing 12-month personal auto expense ratio peaked at 21.7% in March 2012, bottoming at 20.2% in June 2013. Our model assumed a return to a 21% expense ratio, Progressive's expense load stands at 20.3% and may even be improving. We continue to believe policycount and EPS growth will languish given low policy life expectancy, but our new EPS forecast suggests that, even without growth, downside for Progressive shares seems merely marginal."

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 $25.29 yesterday.

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