Brown & Brown: Slowing Organic Growth and Talent Pressures Justify Hold Rating Despite Valuation Discount

William Blair analyst Adam Klauber has maintained their neutral stance on BRO stock, giving a Hold rating today.

Adam Klauber has given his Hold rating due to a combination of factors tied to Brown & Brown’s recent performance and outlook. The company modestly beat fourth-quarter cash EPS expectations, but this upside was driven largely by a favorable tax rate and stronger contingent commissions rather than underlying business strength. Core trends are weaker, with organic growth turning negative and, even after adjusting for unusual items, appearing roughly flat and slowing versus prior quarters. Klauber also reduced his 2026 cash EPS forecast, reflecting a softer revenue trajectory and the expectation that organic growth will continue to trail that of key brokerage peers.

Klauber sees additional pressure ahead from specialty segment challenges, heightened competitive recruiting efforts that are weighing on revenue, and potential increases in costs needed to retain key talent. While synergy benefits from the Accession acquisition and management’s aim for stable adjusted margins offer some support, these positives are expected to be offset by lower investment income and muted organic expansion. Even though the stock now trades at a slight valuation discount relative to comparable firms versus its historical premium, Klauber believes the company’s business mix—particularly its heavier exposure to property—and current organizational issues justify a neutral stance. As a result, he maintains a Hold (Market Perform) rating rather than recommending that investors increase or reduce their positions materially at this time.

According to TipRanks, Klauber is a 3-star analyst with an average return of 1.7% and a 47.43% success rate. Klauber covers the Financial sector, focusing on stocks such as Allstate, Brown & Brown, and Ehealth.

In another report released today, TipRanks – xAI also reiterated a Hold rating on the stock with a $86.00 price target.