Joshua Shanker, an analyst from Bank of America Securities, reiterated the Hold rating on Brown & Brown (BRO – Research Report). The associated price target is $128.00.
Joshua Shanker has given his Hold rating due to a combination of factors impacting Brown & Brown’s performance. The company’s EBITDAC-adjusted margin showed a slight improvement, driven by efficiencies in the Retail segment and revenue timing from recent acquisitions. However, this was offset by lower organic growth than expected, particularly in the Retail and Wholesale segments, which underperformed relative to forecasts.
Shanker’s analysis also noted that while the pace of acquisitions remains healthy, the overall organic growth fell short of expectations. The company’s future growth prospects are challenged by macroeconomic uncertainties, including a slowdown in GDP growth and declining risk prices in Florida. These factors, combined with modest EPS forecast adjustments and limited upside potential relative to the price objective, underpin his Neutral stance on the stock.
In another report released today, Barclays also maintained a Hold rating on the stock with a $121.00 price target.
BRO’s price has also changed moderately for the past six months – from $103.350 to $114.880, which is a 11.16% increase.