Morgan Stanley Remains Bullish on Progressive (PGR) Citing Underwriting Strength

Bob Huang, an analyst from Morgan Stanley, reiterated his Buy rating on The Progressive Corporation (NYSE:PGR), maintaining a price target of $330, on May 29. Although the company’s growth is maturing, Huang believes that maintaining current growth levels and margin strength is critical to supporting a bullish outlook.

An insurance broker discussing policy options with a homeowner.

Huang acknowledged potential risks to growth, but emphasized Progressive’s solid investment case, citing the strength of its underwriting operations. He expects the company’s underwriting business to continue outperforming the street’s expectations through 2026, contributing to improved earnings growth. To support this view, he pointed to Progressive’s combined ratio, which is a key metric of profitability in the insurance industry.

Huang also highlighted Progressive’s strong market positioning, expressing confidence in its ability to maintain growth momentum. He dismissed concerns about the sustainability of the company’s margins, stating that Progressive is well-equipped to navigate potential headwinds.

The Progressive Corporation is an American insurance company that provides insurance for personal and commercial autos and trucks, motorcycles, boats, recreational vehicles, and homes.

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