Bank of America has actually rapidly altered its mind on insurance coverage stock Progressive. BofA updated Progressive back to purchase on Monday, after devaluing the stock to neutral simply 3 weeks earlier, and raised its rate target to $312 per share from $297. The company’s projection requires approximately 18% upside from Friday’s $265.01 close. “This is a great deal of 12mo advantage for what has actually perhaps been the S & & P 100 stock with the very best risk-adjusted returns over the previous years,” expert Joshua Shanker stated of the upgrade. PGR YTD mountain Progressive stock in 2025. The switch is “an unusually brief time to reverse a suggestion modification,” he kept in mind. Shanker associated the turnaround of viewpoint on Progressive stock to its sharp underperformance of the S & & P 500 in the 15 trading sessions in between the preliminary downgrade and upgrade today, in addition to revenues outcomes that revealed a burst in brand-new individual car clients. Progressive stock slipped 8% throughout the duration, Shanker kept in mind, which corresponds to underperforming the S & & P 500 by 1,000 basis points, a relocation that might be exaggerated. “Progressive is perhaps the very best operator within its specific niches of the insurance coverage market with ongoing chance for market share gain and economies of scale development,” the expert stated. Shanker likewise indicated Progressive’s strong first-quarter outcomes, which he stated saw the business notch its finest March ever on a portion basis. Progressive stock has actually ticked up about 10% up until now in 2025 and was up 1.8% Monday early morning in premarket trade.
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