Arthur J. Gallagher upgraded to Overweight from Underweight at Barclays

Barclays upgraded Arthur J. Gallagher (AJG) to Overweight from Underweight with a price target of $262, up from $247. The insurance broker group has “derated sharply on fears of AI-driven disruption,” the analyst tells investors in a research note. Barclays views the selloff as overdone and believes current share multiples now “more than discount” slower growth while overlooking durability of the broker business model and AI’s potential to support productivity and margins. The analyst views AI as a “productivity enabler” for the brokers. Barclays says Arthur J. Gallagher is “one of the best ways to play defense in this environment.”