Insurance company Progressive (NYSE:PGR) is having a Friday to remember after its stock peaked at a new all-time high. This was in reaction to its impressive results for its third quarter and September. The company also scored an upgrade from Neutral to Overweight at Piper Sandler.
PGR traded above $155, beating a previous all-time high of $148, as the reports of its Q3 results made their way into the market. At present, the momentum has seen a marginal drop, but the stock continues to hover around $154.32, a 7.69% gain in the last 24 hours.
Reacting to the report, Paul Newsome, an analyst at Piper Sandler, said he now thinks “most personal lines writers have likely reached an inflection point where prices are rising fast enough to offset claim cost inflation,” according to a note written to clients.
In addition, the analyst said improvement in the company’s underwriting margins and overall profit should drive it towards more profitability in the coming years. Newsome estimates that the company will close next year with nearly 40% growth in earnings, although this is lower than the consensus estimate of 56.6%. Nevertheless, for 2025, the analyst predicts a growth of 27%, which is 2% higher than consensus.
What is the Target Price for PGR Stock?
Turning to Wall Street, analysts have a Hold consensus rating on PGR stock based on seven Buys, six Holds, and three Sells assigned in the past three months, as indicated by the graphic above. Furthermore, the average PGR price target of $142.40 per share implies 7.78% downside risk.
