Analyst Bob Huang from Morgan Stanley maintained a Hold rating on Brown & Brown (BRO – Research Report) and keeping the price target at $120.00.
Bob Huang’s rating is based on a combination of factors that reflect both strengths and challenges for Brown & Brown. The company demonstrated solid organic revenue growth of 6.7%, surpassing market expectations, driven by new business and exposure growth. However, the property catastrophe rates posed a negative offset, which tempered the overall positive outlook.
Additionally, while the Retail and Programs segments showed better-than-expected margins due to disciplined expense management, the Programs segment’s organic growth fell short of expectations. This shortfall was attributed to declines in profit-sharing commissions and slower property catastrophe rates. Despite these challenges, the company maintains a stable growth trajectory, but the uncertain macroeconomic environment warrants a cautious approach, justifying the Hold rating.
In another report released today, Barclays also maintained a Hold rating on the stock with a $121.00 price target.
BRO’s price has also changed moderately for the past six months – from $103.350 to $114.880, which is a 11.16% increase.