Analyst Michael Zaremski from BMO Capital maintained a Buy rating on Arthur J Gallagher & Co (AJG – Research Report) and keeping the price target at $332.00.
Michael Zaremski has given his Buy rating due to a combination of factors including Arthur J. Gallagher & Co.’s (AJG) strategic positioning in the insurance broker market and its potential for revenue growth. Despite the delay in the acquisition of Assured Partners (AP), Zaremski sees AJG’s market share in the small and medium enterprise sector as relatively modest, which suggests less regulatory risk compared to larger market share acquisitions.
Additionally, the delay in the acquisition timeline is seen as a temporary setback rather than a long-term issue, with AJG having raised significant capital to fund the deal. This capital could lead to higher interest income in the short term, offsetting some of the impacts of the delay. Furthermore, the insurance industry’s current environment of rate increases and AJG’s strong expense management are expected to support continued financial growth, reinforcing the Buy rating.
Zaremski covers the Financial sector, focusing on stocks such as Hanover Insurance, Arthur J Gallagher & Co, and Progressive. According to TipRanks, Zaremski has an average return of 13.0% and a 74.00% success rate on recommended stocks.
In another report released on March 5, Evercore ISI also maintained a Buy rating on the stock with a $336.00 price target.