Bank of America Upgrades Progressive (PGR) Stock to Buy With $312 Target

In a notable shift, Bank of America has revised its assessment of Progressive Corp. (PGR), upgrading the insurance giant’s stock just a short time after adopting a more cautious stance. This quick re-evaluation reflects both recent market movements and the company’s underlying operational strength.

Rapid Reversal to “Buy” Rating

Bank of America elevated its recommendation for Progressive shares from “Neutral” back to “Buy” merely three weeks after initially lowering the rating. Alongside this upgrade, the institution increased its price target for the stock from $297 to $312 per share. This new target suggests a potential upside of nearly 18% from the stock’s previous closing levels.

Analyst Cites Performance Factors

Joshua Shanker, the Bank of America analyst covering the stock, acknowledged the “unusually short time to reverse a recommendation.” He attributed the swift change primarily to two factors. Firstly, Progressive’s stock experienced a period of weakness following the initial downgrade, falling 8% and significantly lagging behind the S&P 500 index during that roughly three-week market period. Shanker suggested this underperformance was excessive.

Secondly, the company reported robust quarterly results. Progressive delivered its best March performance in percentage terms in its entire history, underscoring its operational excellence.

Progressive’s Market Position and Growth

Shanker emphasized that Progressive remains the “best operator in its niches within the insurance market.” He also pointed to continued opportunities for the company to capture greater market share and achieve further growth through economies of scale.

Year-to-date in 2025, Progressive shares have already registered gains of approximately 10%. Following the Bank of America upgrade announcement, the stock saw a further increase in pre-market trading.