Analyst Michael Zaremski of BMO Capital maintained a Buy rating on Brown & Brown (BRO – Research Report), retaining the price target of $116.00.
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Michael Zaremski has given his Buy rating due to a combination of factors that highlight Brown & Brown’s strategic position and growth potential. The anticipated acquisition of Accession Risk, valued at $10 billion, is expected to enhance Brown & Brown’s financial performance through synergies such as cost savings and increased program commission capture. This acquisition aligns with the company’s M&A strategy, which was emphasized during BMO’s recent Insurance Distribution Conference.
Furthermore, Zaremski anticipates that the insurance inflation in the small to mid-sized brokerage sector will surpass that of the large account space, leading to accelerated organic growth for Brown & Brown. This, coupled with the potential for significant M&A revenue growth, supports the Buy rating as the company is well-positioned to capitalize on these market dynamics.