By Sam Boughedda
Investing.com — Progressive Corp. (NYSE:) shares fell in early Monday buying and selling just after Piper Sandler analyst Paul Newsome downgraded the company’s shares to Underweight from Neutral.
Newsome stated in a note to purchasers that the stock reflects “far too a lot optimism about how rapid-rising auto insurance plan selling prices will strengthen PGR’s earnings.”
As a result, the analyst expects PGR will miss out on upcoming earnings anticipations.
Earnings anticipations are far too substantial since the rewards of pricing have gotten in advance of by themselves, and “advancement will probably keep on to slow in the subsequent many months,” extra the analyst.
He concluded that they consider Progressive achieved peak earnings in 2020 through the pandemic, and it will be quite a few years before the business will achieve that level of earnings.
Progressive’s stock value, which is up much more than 7% for the calendar year-to-date, tumbled extra than 2% next Newsome’s remarks.