Close

Progressive Corp. (PGR) Hit By Hurricane Ida, Raymond James Reiterates Outperform

September 20, 2021 9:25 AM EDT
Get Alerts PGR Hot Sheet
Price: $206.82 +0.33%

Rating Summary:
    15 Buy, 16 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
Join SI Premium – FREE

Raymond James analyst Gregory Peters reiterated an Outperform rating and $105.00 price target on Progressive Corp. (NYSE: PGR) after the company reported August results of $(0.20) operating EPS compared with the RJ estimate of $0.15 as catastrophe losses from Hurricane Ida impacted results.

The analyst stated "PGR reported total catastrophe losses of $432M in August (RJE: $83M) including $342M related to Hurricane Ida. PGR’s auto CR of 105.3% in August represents the 3rd consecutive month when the CR was above management’s longterm target of 96%. PGR has been reducing their advertising expenditures in an effort to lower the expense ratio while the company continues to file for rate increases to offset the impact of frequency and inflation on the loss ratio. It is worth highlighting that PGR is facing regulatory pushback in a number of states (including TX, FL and OH) where it has pending rate increases which could delay the recovery in profitability. We still believe PGR's auto combined ratio will gradually improve through 2023 as long as inflationary pressure normalizes and management utilizes available pricing/underwriting tools to restore underwriting margins. The last time PGR reported results over their target on a quarterly basis was in 3Q17 (CR of 97.4%) and yet still was able to register a CR of 93.4% for FY17. In that case, PGR still outperformed the S&P 500 by ~35% over the next two-years."

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 $92.61 yesterday.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments, Analyst EPS Change, Analyst EPS View

Related Entities

Raymond James, Standard & Poor's