As previously reported, Morgan Stanley analyst Kai Pan upgraded Progressive to Overweight from Equal Weight, stating that "history shows Progressive wins in a hard market," adding that he believes its superior pricing segmentation and mix shift toward bundled customers should enable it to maintain or widen its margin gap versus peers during a tougher period for the industry. Additionally, he sees potential for a further 80bps increase in portfolio yield, driving about 75% investment income growth by 2020, which Pan believes is underappreciated by the market. He raised his price target on Progressive shares to $84 from $68.