Piper Jaffray Reiterates Neutral Rating on Progressive (PGR)

Piper Jaffray is out with an analyst note this morning, where they reiterated their Neutral rating on shares of Progressive Corp. PGR; they have a $20.00 price target on the stock. Piper analysts are citing a recent investor day, where Progressive's management team told the story of a company continuing to set itself apart from the rest of the pack. Piper analysts said, “A focus on price and customer segmentation along with higher retention provide keys for future policyholder growth.” “Furthermore, investors can expect profitability to remain in place as management emphasized the 96% calendar year combined ratio. Though a leading franchise, we continue to find shares of Progressive fairly valued within the current operating environment.” Piper analysts added, “While less than two years ago there existed concerns around Progressive's capital adequacy, there remains little doubt today. In fact, management proposed the likelihood of a special dividend provided returns remain steady for the remainder of 2010, as current capital levels remained several hundred million above "desired capital" levels. Meanwhile, management expects to continue to return additional capital through share repurchase.”