William Blair analyst Adam Klauber attributes the recent weakness in shares of Progressive to cyclical concerns, the California Commissioner's comments on taxes, and also a "blip" in the loss ratio. However, recent data suggest rate increases remain high, and the potential for California to reduce rates materially is small, Klauber tells investors in a research note. The analyst sees limited downside risk in the shares and believes the current worries are likely overblown. Klauber points out that a multiple of 18 times his 2018 operating earnings estimate suggests a stock price of $71, which is nearly 30% above the current price. He keeps an Outperform rating on Progressive.