Morgan Stanley Raises The Progressive Corporation (PGR)’s Price Target to $330 from $320, Maintains Overweight Rating

On May 19, Morgan Stanley analyst Bob Huang raised The Progressive Corporation (NYSE:PGR)’s price target to $330 per share, representing a 3.12% increase from the prior target price of $320. The raise reflects the analysts’ strong confidence in the company’s future performance.

The stock has surged 20% year-to-date, comfortably outpacing the broader market index, which has gained a meagre 1% during the period. Investors are buoyed by The Progressive Corporation (NYSE:PGR)’s recent quarterly results, marking a 10% year-over-year increase in profit, driven by robust demand for its auto insurance policies.

A team of accountants in a boardroom, discussing strategic moves of an insurance company.

The London Company Large Cap Strategy stated the following regarding The Progressive Corporation (NYSE:PGR) in its Q1 2025 investor letter:

“The Progressive Corporation (NYSE:PGR) – PGR outperformed during the quarter, driven by improved margins, faster growth than the industry, and a rise in policies in force. PGR’s superior underwriting risk segmentation continues to translate to industry-leading accident frequency outcomes. We remain confident in PGR’s ability to execute in all environments, competitive advantages, and capital allocation strategies.”

Wall Street analysts are bullish on the stock with a consensus Buy rating.

While we acknowledge the potential of PGR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PGR and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.