Brown & Brown (NYSE:BRO) Upgraded to Strong-Buy at TD Cowen

Key Points

• TD Cowen upgraded Brown & Brown to “Strong Buy,” adding to a mixed analyst outlook that includes seven Buy ratings, twelve Holds and one Sell; the average rating remains “Hold” with a $76 price target.
• Brown & Brown shares opened at $64.15, while the company’s latest quarter showed 30.4% year-over-year revenue growth to $1.65 billion, though EPS and revenue came in slightly below estimates.
• Institutional investors maintain significant interest in the insurer, with hedge funds and other institutions owning 71.01% of outstanding shares; BlackRock and Deutsche Bank recently established sizable positions.

Brown & Brown (NYSE:BRO - Get Free Report) was upgraded by equities research analysts at TD Cowen to a "strong-buy" rating in a report issued on Monday, Zacks reports.

Several other research firms also recently commented on BRO. Barclays reduced their price objective on Brown & Brown from $76.00 to $71.00 and set an "equal weight" rating for the company in a research note on Wednesday, October 7th. Raymond James Financial reaffirmed an "outperform" rating on shares of Brown & Brown in a research report on Friday, June 26th. Citigroup reiterated a "market outperform" rating on shares of Brown & Brown in a research note on Monday. Weiss Ratings raised Brown & Brown from a "sell (d+)" rating to a "hold (c-)" rating in a report on Wednesday, August 19th. Finally, Keefe, Bruyette & Woods raised Brown & Brown from an "underperform" rating to an "outperform" rating and set a $77.00 target price on the stock in a report on Monday. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, Brown & Brown presently has an average rating of "Hold" and an average price target of $76.00.

Brown & Brown Trading Up 0.8%

NYSE BRO opened at $64.15 on Monday. The firm's fifty day moving average is $67.43 and its two-hundred day moving average is $64.85. Brown & Brown has a one year low of $53.81 and a one year high of $95.25. The company has a debt-to-equity ratio of 0.58, a quick ratio of 2.11 and a current ratio of 2.11. The firm has a market cap of $21.46 billion, a PE ratio of 14.34, a P/E/G ratio of 1.89 and a beta of 0.60.

Brown & Brown (NYSE:BRO - Get Free Report) last announced its earnings results on Monday, July 27th. The financial services provider reported $1.07 earnings per share for the quarter, missing the consensus estimate of $1.08 by ($0.01). Brown & Brown had a return on equity of 13.17% and a net margin of 17.75%. The business had revenue of $1.65 billion for the quarter, compared to analyst estimates of $1.71 billion. During the same quarter last year, the company posted $1.03 EPS. Brown & Brown's quarterly revenue was up 30.4% on a year-over-year basis. Analysts expect that Brown & Brown will post 4.49 earnings per share for the current year.

Institutional Investors Weigh In On Brown & Brown

A number of institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. acquired a new stake in Brown & Brown during the 2nd quarter valued at $1,418,571,000. Principal Financial Group Inc. increased its position in Brown & Brown by 1.6% during the first quarter. Principal Financial Group Inc. now owns 15,608,720 shares of the financial services provider's stock worth $1,017,847,000 after buying an additional 246,172 shares in the last quarter. Deutsche Bank AG purchased a new position in Brown & Brown during the second quarter worth $266,941,000. Bank of America Corp DE raised its holdings in shares of Brown & Brown by 45.2% in the first quarter. Bank of America Corp DE now owns 3,623,179 shares of the financial services provider's stock worth $236,268,000 after acquiring an additional 1,128,417 shares during the last quarter. Finally, Royal Bank of Canada raised its holdings in shares of Brown & Brown by 5.1% in the first quarter. Royal Bank of Canada now owns 3,569,784 shares of the financial services provider's stock worth $232,786,000 after acquiring an additional 173,320 shares during the last quarter. Hedge funds and other institutional investors own 71.01% of the company's stock.

Trending Headlines about Brown & Brown

Here are the key news stories impacting Brown & Brown this week:

• Positive Sentiment: TD Cowen initiated coverage of Brown & Brown with a Buy rating, arguing the insurance broker could be positioned for an upward re-rating. The new bullish view is the clearest positive catalyst in the latest coverage. TD Cowen initiates coverage of Brown & Brown with buy
• Positive Sentiment: Citizens JMP lowered its price target to $75 from $78 but retained a Market Outperform rating, implying meaningful potential upside from the recent trading level. Brown & Brown given new $75 price target at Citizens JMP
• Neutral Sentiment: Wells Fargo reduced its price target to $68 from $69 and maintained an Equal Weight rating. The target remains above the recent price, but the cut indicates limited analyst conviction. Brown & Brown given new $68 price target at Wells Fargo
• Neutral Sentiment: Brown & Brown is expanding its talent pipeline by placing 16 graduates across six regional offices in a three-year professional insurance training program. The initiative supports longer-term growth but is unlikely to materially affect near-term earnings. Brown & Brown graduate training program
• Negative Sentiment: BofA cut its price target to $81 from $87 while keeping a Neutral rating, reflecting a more cautious view of valuation or near-term performance. BofA adjusts Brown & Brown price target
• Negative Sentiment: Recent commentary questions whether insurer payments and other items may be masking weakness in Brown & Brown’s core brokerage operations. That raises concerns about the durability of underlying business performance despite the company’s long-term insurance-sector positioning. Brown & Brown core business analysis

About Brown & Brown

Brown & Brown, Inc is an independent insurance brokerage, risk management and employee benefits firm headquartered in Daytona Beach, Florida. The company helps businesses, public entities and individuals identify, manage and transfer risk through insurance placement, risk consulting and related services.

Its offerings include property and casualty insurance, employee benefits, personal insurance, surety products, risk management services and specialized insurance programs. Brown & Brown also operates wholesale brokerage businesses that provide coverage solutions and access to insurance markets for retail agents and brokers, including products designed for specialty and hard-to-place risks.

Founded in 1939 by J.

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