Piper Sandler downgraded Arthur J. Gallagher (AJG) to Neutral from Overweight with a price target of $272, down from $276. The company’s organic growth will likely be lower than investor expectations in the near-term and margin headwinds from AssuredPartners could drive margin contraction until AssuredPartners is accretive to margins, the analyst tells investors in a research note. Piper says that in a softening market where investors care more about organic growth, Arthur J. Gallagher’s acquisition model will be less favorable.
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