Strategic M&A and Growth Projections Drive Buy Rating for Brown & Brown

Analyst Michael Zaremski of BMO Capital maintained a Buy rating on Brown & Brown (BRO – Research Report), with a price target of $116.00.

Michael Zaremski has given his Buy rating due to a combination of factors, primarily focusing on Brown & Brown’s strategic approach to mergers and acquisitions (M&A). The company is reportedly considering acquiring Accession Risk, a move that aligns with the broader industry trend of insurance brokers pursuing M&A to drive shareholder value. This strategy has historically contributed significantly to the value creation for companies like Brown & Brown and is expected to continue doing so in the future.
Additionally, Zaremski’s projections for Brown & Brown’s earnings per share (EPS) in 2026 and 2027 are notably higher than consensus estimates. This optimism is based on the company’s ability to leverage free cash flow and new EBITDA effectively. Furthermore, the anticipated insurance inflation in the small to mid-sized brokerage space is expected to outpace that of larger accounts, potentially leading to faster organic growth for Brown & Brown. These factors collectively support the Buy rating, indicating confidence in the company’s future performance and growth potential.