12:56 PM EDT, 05/20/2024 (MT Newswires) -- Progressive (PGR) has been ranked a "top pick" by Morgan Stanley, citing strong growth prospects and attractive pricing, while also noting that growth and margin remain "underappreciated".

"The stock price has grown [about ] 730% over the past 10 years with a beta of 0.5," Morgan Stanley said in a note Monday.

The investment firm said Progressive is trading at a premium as compared to peers but added the company is "attractively" valued in comparison to the popular stocks available on the market considering its price-to-earnings ratio and growth-adjusted metrics.

Morgan Stanley said that the company is on track to achieve an EPS of more than $11 in 2024, thanks to strong underwriting margin and investment income so far this year.

Revenue growth is underpinned by favorable positioning and underwriting discipline supports its earnings per share growth. The underwriting discipline is expected to continue through 2025, according to the brokerage.

Morgan Stanley assigned an overweight rating to Progressive's stock with a price target of $256.

Shares of Progressive were down 0.7% in recent trading.

Price: 207.75, Change: -1.47, Percent Change: -0.70