Brown & Brown (NYSE:BRO) Price Target Lowered to $72.00 at Royal Bank Of Canada

Key Points

• Royal Bank of Canada cut its price target on Brown & Brown to $72 from $76 and kept a "sector perform" rating, implying about a 15.5% upside from the prior close.
• Multiple brokers have trimmed targets (e.g., JPMorgan to $85, BofA to $88, Morgan Stanley to $70), leaving the consensus rating at Hold with an average price target of $83.
• Q1 results showed total revenue up 35.4% driven by acquisitions while organic revenue was flat and EPS modestly beat estimates, but shares traded near $62.32 (close to the 52‑week low), highlighting concerns about M&A reliance and increased leverage.

Brown & Brown (NYSE:BRO - Get Free Report) had its target price lowered by investment analysts at Royal Bank Of Canada from $76.00 to $72.00 in a report released on Wednesday,Benzinga reports. The brokerage currently has a "sector perform" rating on the financial services provider's stock. Royal Bank Of Canada's target price would suggest a potential upside of 15.53% from the company's previous close.

BRO has been the subject of a number of other research reports. JPMorgan Chase & Co. reduced their price objective on Brown & Brown from $91.00 to $85.00 and set a "neutral" rating for the company in a research note on Thursday, April 9th. Bank of America cut their target price on Brown & Brown from $90.00 to $88.00 and set a "neutral" rating on the stock in a report on Tuesday, April 14th. Truist Financial reduced their price target on shares of Brown & Brown from $100.00 to $90.00 and set a "buy" rating for the company in a research report on Wednesday. Morgan Stanley decreased their price target on shares of Brown & Brown from $76.00 to $70.00 and set an "equal weight" rating for the company in a research note on Monday, April 6th. Finally, Argus raised shares of Brown & Brown to a "hold" rating in a research note on Tuesday, January 27th. Three research analysts have rated the stock with a Buy rating and fifteen have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $83.00.

Brown & Brown Stock Down 1.3%

BRO traded down $0.82 during midday trading on Wednesday, hitting $62.32. The company had a trading volume of 1,309,118 shares, compared to its average volume of 3,248,347. Brown & Brown has a 52 week low of $61.65 and a 52 week high of $113.83. The company has a quick ratio of 1.66, a current ratio of 1.66 and a debt-to-equity ratio of 0.55. The company has a market capitalization of $21.22 billion, a price-to-earnings ratio of 20.06, a PEG ratio of 1.80 and a beta of 0.83. The stock's 50 day moving average price is $67.94 and its 200 day moving average price is $75.38.

Brown & Brown (NYSE:BRO - Get Free Report) last released its quarterly earnings data on Monday, April 27th. The financial services provider reported $1.39 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.36 by $0.03. The company had revenue of $1.90 billion for the quarter, compared to analysts' expectations of $1.92 billion. Brown & Brown had a net margin of 17.94% and a return on equity of 13.05%. The business's revenue was up 35.4% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.29 EPS. On average, research analysts anticipate that Brown & Brown will post 4.54 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Brown & Brown

Hedge funds have recently modified their holdings of the company. ICONIQ Capital LLC grew its position in shares of Brown & Brown by 5.4% during the 2nd quarter. ICONIQ Capital LLC now owns 2,110 shares of the financial services provider's stock valued at $234,000 after acquiring an additional 109 shares during the period. Zacks Investment Management raised its holdings in shares of Brown & Brown by 0.7% in the 3rd quarter. Zacks Investment Management now owns 17,854 shares of the financial services provider's stock worth $1,675,000 after purchasing an additional 125 shares during the period. Freedom Day Solutions LLC lifted its stake in Brown & Brown by 0.7% in the third quarter. Freedom Day Solutions LLC now owns 18,632 shares of the financial services provider's stock valued at $1,747,000 after purchasing an additional 129 shares during the last quarter. Private Trust Co. NA lifted its stake in Brown & Brown by 13.1% in the fourth quarter. Private Trust Co. NA now owns 1,147 shares of the financial services provider's stock valued at $91,000 after purchasing an additional 133 shares during the last quarter. Finally, Moment Partners LLC lifted its stake in Brown & Brown by 3.0% in the third quarter. Moment Partners LLC now owns 4,632 shares of the financial services provider's stock valued at $434,000 after purchasing an additional 136 shares during the last quarter. Institutional investors own 71.01% of the company's stock.

Key Brown & Brown News

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

• Positive Sentiment: Strong consolidated Q1: total revenue rose ~35.4% and net income increased ~28.7%, driven by acquisitions and higher commissions; management highlighted improved adjusted margins. GlobeNewswire: Q1 Results
• Positive Sentiment: Broker support: Truist kept a Buy rating while trimming its price target to $90 (still a sizeable upside vs. current levels), which provides an institutional vote of confidence. Benzinga: Truist PT Cut
• Neutral Sentiment: Board declared a quarterly cash dividend of $0.165 per share (payable May 20; record May 11), offering income support to holders but limited offset to growth concerns. GlobeNewswire: Dividend
• Neutral Sentiment: Full materials available (earnings presentation and transcript) — useful for assessing sustainability of acquisition-driven results and management commentary on integration, margins and capital allocation. Seeking Alpha: Q1 Call Transcript
• Negative Sentiment: Analyst caution: Keefe, Bruyette & Woods cut its target to $72 and moved to "market perform," signaling more conservative near-term expectations. That downgrade may pressure sentiment. Benzinga: Keefe PT Cut
• Negative Sentiment: Independent research is skeptical — a Seeking Alpha piece argues BRO is overvalued given slowing organic growth and sector headwinds, lowering a fair‑value target to $58 and recommending Hold. That note amplifies downside narratives. Seeking Alpha: No Significant Upside
• Negative Sentiment: Underlying business signs of strain: organic revenue was flat (0.0%) in Q1 and GAAP diluted EPS (reported) was weaker, creating concern that growth is dependent on M&A rather than core organic momentum; financing for recent deals has increased leverage and near-term cash use. Insurance Business: Flat Organic Growth

Brown & Brown Company Profile

Brown & Brown, Inc NYSE: BRO is a professional insurance brokerage and risk advisory firm that provides a broad range of property and casualty, employee benefits, personal risk, and specialty insurance products. The company works with commercial, public sector and individual clients to design and place insurance programs, manage claims and loss control, and deliver risk management consulting. Its services also include wholesale brokerage, program administration and other specialty distribution solutions that connect carriers and intermediaries to niche markets.

Brown & Brown operates through a decentralized model of operating units and subsidiaries, enabling local client service with the scale to access national and specialty markets.

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