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William Blair upgrades Baldwin Group with ‘growing pains’ in past

William Blair last night upgraded Baldwin Group to Outperform from Market Perform. The company has “pushed past its growing pains” and will be increasingly viewed as a quality compounder that can grow earnings in the 20% to 30% range over the medium to long term, the analyst tells investors in a research note. The firm says Baldwin has built a significant personal lines platform that differentiates it from the commercial-lines-focused core brokers. Blair sees the prospect for more consistent margin improvement and adjusted earnings growth, and a step-up in free cash flow that should support reinvestment and tuck-in acquisition activity.

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