Citigroup Has Lowered Expectations for Brown & Brown (NYSE:BRO) Stock Price

Key Points

• Citigroup lowered Brown & Brown’s price target from $79 to $76 while maintaining a neutral rating, implying approximately 15.6% upside from the stock’s $65.74 price.
• Analyst sentiment remains mixed but generally cautious: Brown & Brown has an average “Hold” rating and a consensus price target of $75.53, with 13 analysts rating it a Hold.
• The company’s latest quarter showed 7.4% revenue growth, but revenue and EPS slightly missed estimates, while weaker organic growth and declining profit margins raised concerns about operating performance.

Brown & Brown (NYSE:BRO - Get Free Report) had its target price lowered by analysts at Citigroup from $79.00 to $76.00 in a research note issued on Wednesday, Benzinga reports. The brokerage presently has a "neutral" rating on the financial services provider's stock. Citigroup's target price would suggest a potential upside of 15.60% from the company's current price.

BRO has been the subject of a number of other reports. JPMorgan Chase & Co. boosted their price target on shares of Brown & Brown from $80.00 to $83.00 and gave the stock a "neutral" rating in a research note on Thursday, October 1st. Truist Financial reduced their price objective on shares of Brown & Brown from $90.00 to $85.00 and set a "buy" rating on the stock in a research note on Wednesday. Weiss Ratings raised shares of Brown & Brown from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, October 22nd. Morgan Stanley dropped their target price on shares of Brown & Brown from $60.00 to $55.00 and set an "underweight" rating for the company in a research report on Tuesday, October 6th. Finally, Mizuho dropped their target price on shares of Brown & Brown from $83.00 to $78.00 and set an "outperform" rating for the company in a research report on Wednesday, October 7th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Brown & Brown currently has an average rating of "Hold" and a consensus price target of $75.53.

Brown & Brown Trading Down 2.7%

Shares of NYSE BRO traded down $1.81 during midday trading on Wednesday, hitting $65.74. The stock had a trading volume of 3,750,583 shares, compared to its average volume of 2,946,439. The company has a debt-to-equity ratio of 0.58, a current ratio of 2.11 and a quick ratio of 2.11. Brown & Brown has a fifty-two week low of $53.81 and a fifty-two week high of $82.57. The firm has a market cap of $22.00 billion, a P/E ratio of 20.81, a price-to-earnings-growth ratio of 2.27 and a beta of 0.60. The company's 50-day simple moving average is $67.22 and its 200 day simple moving average is $67.03.

Brown & Brown (NYSE:BRO - Get Free Report) last posted its quarterly earnings results on Monday, October 26th. The financial services provider reported $1.07 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.08 by ($0.01). Brown & Brown had a net margin of 17.75% and a return on equity of 13.17%. The firm had revenue of $1.70 billion during the quarter, compared to the consensus estimate of $1.76 billion. During the same quarter in the prior year, the business earned $1.05 EPS. Brown & Brown's revenue was up 7.4% on a year-over-year basis. Research analysts anticipate that Brown & Brown will post 4.49 EPS for the current year.

Hedge Funds Weigh In On Brown & Brown

A number of hedge funds and other institutional investors have recently made changes to their positions in BRO. Continuum Advisory LLC bought a new stake in Brown & Brown during the 2nd quarter worth approximately $34,000. Allied Private Wealth LLC bought a new position in Brown & Brown in the second quarter valued at approximately $35,000. Johnson Financial Group Inc. acquired a new position in shares of Brown & Brown in the second quarter valued at approximately $37,000. Manchester Capital Management LLC boosted its holdings in shares of Brown & Brown by 853.3% in the third quarter. Manchester Capital Management LLC now owns 572 shares of the financial services provider's stock valued at $38,000 after buying an additional 512 shares during the period. Finally, Elevation Wealth Partners LLC boosted its holdings in shares of Brown & Brown by 175.1% in the third quarter. Elevation Wealth Partners LLC now owns 619 shares of the financial services provider's stock valued at $40,000 after buying an additional 394 shares during the period. 71.01% of the stock is owned by institutional investors.

Trending Headlines about Brown & Brown

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

• Positive Sentiment: Truist Financial maintained a Buy rating while reducing its price target from $90 to $85, implying substantial potential upside based on the stock’s recent level. Truist Financial price target update
• Positive Sentiment: Management outlined a long-term opportunity to generate approximately $175 million in run-rate net EBITDAC synergies by the end of 2028 and projected 2027 retail organic growth of 2%–4%, which could support future profitability if execution improves. Brown & Brown synergy and outlook report
• Neutral Sentiment: Third-quarter revenue rose 7.4% year over year to approximately $1.725 billion, while adjusted EPS increased to $1.07 from $1.05. The growth was driven largely by acquisitions, including the addition of roughly 5,000 Accession employees, rather than strong underlying demand.
• Negative Sentiment: Revenue fell short of the approximately $1.76 billion analyst consensus, and adjusted EPS missed estimates by $0.01. The company’s 1.2% organic revenue growth—1.5% including contingents—was viewed as weak in a challenging rate environment. Brown & Brown Q3 revenue miss report
• Negative Sentiment: Profitability deteriorated: the adjusted EBITDAC margin declined to 34.6% from 36.6%, while the pretax margin fell to 18.6% from 19.4%. Acquisition and integration costs, softer specialty markets and pressure from the current insurance-rate environment weighed on results. Zacks Brown & Brown earnings analysis

Brown & Brown Company Profile

Brown & Brown, Inc is an insurance brokerage and risk management company headquartered in Daytona Beach, Florida. The company helps businesses, public entities, individuals and other organizations identify, manage and transfer risk by arranging insurance coverage and providing related advisory services.

Its operations include retail insurance brokerage, national programs, wholesale brokerage and services. Brown & Brown offers property and casualty insurance, employee benefits, personal insurance, surety and other specialized coverage.

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