Will This Upgrade Help Progressive (PGR) Stock Today?

Story updated at 9:55 a.m. to reflect market activity.

NEW YORK (TheStreet) -- Progressive (PGR) was upgraded to "buy" from "neutral" by Goldman Sachs (GS) Tuesday.

Shares of Progressive gained 0.6% to $25.17 in morning trading.

The analyst firm set a price target of $28 for the company. Personal insurers like Progressive should outperform in the near term, according to Goldman Sachs analysts.

"We are upgrading PGR to Buy and raising our 12-month price target to $28 on our view of strength in personal lines, a surprisingly strong capital deployment story, and seasonal strength for PGR's recreationally-heavy book of exposures," analyst Michael Nanizzi wrote. "Although competition is heating up in PGR's Agency business, we believe the downside risk is manageable given our otherwise favorable view."

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Shares of Progressive are up 2.20% to $25.57 in pre-market trade.

TheStreet Ratings team rates PROGRESSIVE CORP-OHIO as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate PROGRESSIVE CORP-OHIO (PGR) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

If you liked this article you might like

How Well Do You Know Your Insurer -- and Its Reinsurer?

Allstate and Travelers Likely Spared From Worst Hurricane Irma, Harvey Damages

How to Make Easy Money on Apple's iPhone X Worldwide Reveal: Market Recon

Debt Ceiling Progress Boosts Stocks, but Hurricane Irma Rains on Major Rally

Fed's Fischer Throws a Curveball; Markets Eye Hurricane Irma -- ICYMI Wednesday