JPMorgan upgraded Progressive Corp. (NYSE:PGR) to Overweight from Neutral in a note Monday, with analysts maintaining a $146 price target on the stock.
They stated that the concerns of short-term pain are creating long-term attractive gains.
While the analysts acknowledged that PGR, which fell over 13% on Thursday last week, reported "poor" June results, they said it does not alter the firm's long-term view of the company's earnings power and growth potential.
"We have been reluctant to recommend PGR due to optimistic consensus EPS estimates, and expected slowdown in PIF growth and a stretched valuation," they wrote.
"EPS forecasts remain high, but growth expectations have become less optimistic, and valuation seems compelling following the stock's pullback."