In a report released yesterday, Bob Huang from Morgan Stanley maintained a Hold rating on Brown & Brown, with a price target of $100.00.
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Bob Huang’s rating is based on a combination of factors, including the current state of Brown & Brown’s organic growth and market conditions. The company’s organic growth has been weak, which is expected due to challenging comparisons and a softening pricing cycle. However, there is a sign of stabilization as the growth rate did not decline further from previous quarters.
Looking ahead, Brown & Brown will face tougher comparisons in the near term, but the year-over-year comparisons are expected to ease in 2026, potentially leading to a reacceleration of growth. Despite the challenges, the company’s margins remain solid, supported by effective cost management. The valuation of Brown & Brown has become more attractive, yet the pricing environment remains a headwind, which contributes to the Hold rating.