Selected stock price target news of the day - July 17, 2023

By Matthew Otto

 

Progressive Faces Challenges as Expenses Rise and Growth Slows

 

Progressive is facing challenges that have impacted its performance. Higher expenses and slowing growth have led to a downgrade by Wells Fargo analyst Elyse Greenspan. The total number of automotive policies in force at the end of June showed a slight decline compared to May, and the company’s underwriting profits have been shrinking. The combined ratio, which measures underwriting and corporate expenses against revenue, was unfavorable in June at 104.9%, indicating that insurance underwriting was losing money. These disappointing results and the anticipated normalization of insurance expenses have led to a hold rating on the stock.

 

The increasing costs of paying auto claims have also contributed to Progressive’s challenges. The rising value of new and used cars in recent years has resulted in higher repair costs and more expensive auto insurance claims. Although the Manheim Used Vehicle Value Index showed a slight year-over-year decline in June, prices are still higher than pre-pandemic levels.

Progressive Receives Mixed Analyst Ratings and Lowered Price Targets

  • Wells Fargo analyst Elyse Greenspan downgrades to Equal-Weight and her price target from $162 to $128.
  • Raymond James analyst C. Gregory Peters maintains an Outperform rating but lowers his price target from $145 to $140.
  • Citigroup analyst Michael Ward reiterates a Sell rating and lowers the price target from $123 to $106.
  • Barclays analyst Tracy Benguigui remains with an Underweight rating and drops his price target from $120 to $103.

 

Analyst Meyer Shields (STIFEL) currently has the highest performing score on PGR with 14/16 (87.5%) price target fulfillment ratio. His price targets carry an average of $1.82 (10.10%) potential upside. Progressive stock price reaches these price targets on average within 160 days.

 

Chipotle Tests Robot to Revolutionize Food Preparation

 

Chipotle Mexican Grill is testing a new collaborative robot prototype called Autocado, designed to cut, core, and peel avocados for guacamole preparation. The robot, developed by Vebu, aims to significantly reduce the time it takes to make a batch of guacamole. Currently, it takes approximately 50 minutes, but Autocado has the potential to cut that time in half. Chipotle is also exploring the development of a robotic tortilla-chip maker named Chippy, which fries and seasons chips. The company has a history of embracing fast-food technology, including launching an order-ahead app.

 

Chipotle is not alone in experimenting with robotics in the fast-food industry. White Castle has been testing a robot that operates a frying station, McDonald’s has unveiled an automated test restaurant with robots serving customers at the drive-through, and Starbucks introduced the Siren System to reduce drink-making time.

 

However, developing and implementing these robotic technologies is a complex process. While Chippy has been integrated into one store for testing, Chipotle’s robotic initiatives are still underway.

 

Analysts Bullish on Chipotle Mexican Grill, Raise Price Targets

  • Oppenheimer analyst Brian Bittner maintains an Outperform rating and increase the price target from $2050 to $2350.
  • Stephens & Co. analyst Joshua Long reiterates an Overweight rating and raises the price target from $2280 to $2400.
  • Morgan Stanley analyst Brian Harbour raises the price target to $2025.
  • Guggenheim analyst Gregory Francfort increases the price target from $1550 to $1950.
  • Citi analyst Gregory Badishkanian raises the price target to $2454.

 

Analyst Nick Setyan (WEDBUSH) currently has the highest performing score on CMG with 41/45 (91.11%) price target fulfillment ratio. His price targets carry an average of $67.1 (4.98%) potential upside. Chipotle Mexican Grill stock price reaches these price targets on average within 122 days

Ford Cuts Prices for Electric F-150 Lightning Pickup Amid Increased Production

 

Ford Motor has announced price cuts for its electric F-150 Lightning pickup truck. The company has reduced prices for some of the lower-priced versions of the Lightning by nearly $10,000, while prices for all versions, including the top-line Platinum trim, will decrease by at least $6,000 compared to the levels set in March. Ford had previously raised prices for the Lightning due to supply constraints and higher prices for battery minerals. The production upgrades at the Dearborn factory, where the Lightning is manufactured, will result in a temporary closure of the facility for several weeks.

 

Ford’s CEO, Jim Farley, has made the production of Lightning and other electric vehicles a priority. However, the company faced challenges in this endeavor, including a production shutdown of five weeks following a fire incident in a completed truck in February. The initial lowest price for the Lightning was around $40,000, but it had been raised multiple times, reaching about $60,000 in March. With the latest price cuts, the entry-level truck’s sticker price will be around $50,000, while the extended-range Platinum trim will start at approximately $92,000, down from over $98,000.

Analysts Maintain and Adjust Price Targets for Ford Motor Stock

  • Wells Fargo analyst Colin Langan maintains with an Underweight rating and raised the price target from $10 to $11.
  • Barclays analyst Dan Levy reiterates an Equal-Weight rating and increased the price target from $13 to $14.
  • Citigroup analyst Itay Michaeli remains with a Buy rating while increasing the price target from $16 to $17.

 

Analyst Jairam Nathan (DAIWA) currently has the highest performing score on F with 3/3 (100%) price target fulfillment ratio. His price targets carry an average of $1.48 (15.20%) potential upside. Ford Motor stock price reaches these price targets on average within 538 days

 

Daily stock Analysts Top Price Moves Snapshot