William Blair analyst Adam Klauber has maintained their bullish stance on AJG stock, giving a Buy rating today.
Adam Klauber has given his Buy rating due to a combination of factors including Arthur J. Gallagher & Co.’s impressive financial performance in the first quarter. The company reported cash EPS of $3.67, surpassing consensus expectations by $0.10, driven by an impressive 8.5% organic growth rate. Additionally, the brokerage segment’s EBITDAC margin improved by approximately 100 basis points year-over-year, indicating strong operational efficiency.
Moreover, Klauber highlights the company’s robust new business development and its strategic focus on the middle-market segment as key contributors to its success. Despite some timing benefits influencing the first-quarter results, the underlying performance remains strong. The analyst also notes the potential for further growth, with an increased 2025 cash EPS estimate and the possibility of additional upside from the AssuredPartners deal and favorable pricing conditions. These factors collectively underscore the stock’s attractiveness and justify the Buy rating.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $350.00 price target.