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Analysts Offer Insights on Financial Companies: Progressive (SBCF) and Seacoast Banking Corporation Of Florida (SBCF)


Companies in the Financial sector have received a lot of coverage today as analysts weigh in on Progressive (NYSE: PGR) and Seacoast Banking Corporation Of Florida (NASDAQ: SBCF).

Progressive (NYSE: PGR)

In a report released yesterday, Randy Binner from B.Riley FBR maintained a Hold rating on Progressive (NYSE: PGR), with a price target of $54. The company’s shares opened today at $62.81, close to its 52-week high of $64.77.

Binner noted:

“On June 13, PGR reported May operating EPS of $0.38 versus our estimate of $0.36. Top-line growth was higher than our forecast. Net premiums written (NPW) growth was +19.8% Y/Y versus our +5.0% estimate. The reported underlying loss ratio (ex-cat and PYD) came in at 66.3% in May versus our 69.0% estimate. Cat losses came in higher at $52M versus our $37M estimate, and unfavorable prior year development (PYD) of $11.5M was over our forecast of no reserve development. The expense ratio was elevated at 21.0% versus our 20.3% estimate. Net Investment income came in higher at $65M versus our $54M estimate. The company did not repurchase shares in the month. We maintain our Neutral rating and $54 price target with the shares now trading at 15.9x our 2019 EPS estimate of $3.90, versus the five-year historical P/ E median of 15.6x.”

According to TipRanks.com, Binner is a 5-star analyst with an average return of 13.7% and a 68.7% success rate. Binner covers the Financial sector, focusing on stocks such as American Equity Investment Life, American International Group, and Health Insurance Innovations.

Currently, the analyst consensus on Progressive is Moderate Buy and the average price target is $65.60, representing a 4.4% upside.

In a report released yesterday, Wells Fargo also maintained a Hold rating on the stock with a $64 price target.

See today’s analyst top recommended stocks >>

Seacoast Banking Corporation Of Florida (NASDAQ: SBCF)

B.Riley FBR analyst Steve Moss reiterated a Buy rating on Seacoast Banking Corporation Of Florida (NASDAQ: SBCF) yesterday and set a price target of $37. The company’s shares opened today at $32.83, close to its 52-week high of $33.21.

Moss said:

“Seacoast’s (SBCF) acquisition of First Green Bank enhances its Orlando franchise and should create significant earnings accretion with a very short earn back of less than one year. SBCF expects 50%+ cost saves, as the branch footprint proximity creates an immediate opportunity for cost synergies, which should drive 10% earnings accretion in 2019. Additionally, SBCF’s capital position will remain strong after the deal, which should support growth and allow SBCF the opportunity to pursue additional, accretive transactions. SBCF is a high-quality franchise, and we believe the bank should command a premium to peers given its growth and market share in Florida. We reiterate our Buy rating and raise our price target from $30 to $37 to reflect our revised estimates for the acquisition.”

According to TipRanks.com, Moss is a 5-star analyst with an average return of 13.2% and a 79.8% success rate. Moss covers the Financial sector, focusing on stocks such as Meta Financial Group, Banc of California, and Regions Financial.

Seacoast Banking Corporation Of Florida has an analyst consensus of Hold, with a price target consensus of $32.

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