BMO Capital analyst Charlie Lederer maintained a Hold rating on Baldwin Insurance Group yesterday and set a price target of $34.00.
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Charlie Lederer has given his Hold rating due to a combination of factors related to Baldwin Insurance Group’s current financial and strategic position. While Baldwin has demonstrated strong revenue growth, particularly in the last five years, its EBITDA margin remains below that of its peers, which raises concerns about its operational efficiency. Additionally, the recent deal, although potentially accretive with synergies, could increase leverage, making execution a critical focus for investors.
Furthermore, Baldwin’s valuation, when considering synergies and deferred tax assets, appears more favorable, but the high initial deal price could be a deterrent. Despite these challenges, Baldwin’s potential to enhance cash flow visibility and resume its M&A activities in the near future provides a balanced outlook. Therefore, Lederer suggests a Hold rating as the company navigates these opportunities and risks.
According to TipRanks, Lederer is an analyst with an average return of -8.6% and a 35.71% success rate.