Progressive (PGR) is likely to post a notable fiscal Q1 beat, as the consensus policy growth rate could be more conservative than recent growth trends, BofA Securities said in a Monday research note.

The tort reform in Florida and autonomous driving, which lower claims, lawsuits, claim variability, and insurance coverage costs, are positive for insurance margins and capital utilization, the firm said.

Technology remains an opportunity amid the emergence of self-driving cars, which disproportionately benefits the most accurate underwriters with the best economies-of-scale pricing for clients, according to the note.

The brokerage said it reiterated its buy rating on the stock and cut its price target to $329 per share from $334.

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