Truist Financial Issues Pessimistic Forecast for Brown & Brown (NYSE:BRO) Stock Price

Key Points

• Truist cut its price target on Brown & Brown from $100 to $90 while keeping a "buy" rating, a level that still implies roughly 45% upside from the stock's recent close (~$62.11).
• Analyst sentiment is largely cautious — the consensus rating is Hold with a $83.60 consensus price target after multiple firms (Goldman, JPMorgan, Jefferies, UBS) trimmed their forecasts.
• Brown & Brown reported Q1 revenue up 35.4% to $1.9 billion and an adjusted EPS beat, but organic growth was flat and analysts warn of integration, margin and valuation risks; the company also declared a quarterly dividend.

Brown & Brown (NYSE:BRO - Get Free Report) had its target price dropped by equities researchers at Truist Financial from $100.00 to $90.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The brokerage presently has a "buy" rating on the financial services provider's stock. Truist Financial's price objective points to a potential upside of 44.91% from the stock's previous close.

Other equities analysts have also recently issued research reports about the stock. The Goldman Sachs Group lowered their price objective on shares of Brown & Brown from $82.00 to $73.00 and set a "neutral" rating on the stock in a research note on Wednesday, April 8th. Argus upgraded Brown & Brown to a "hold" rating in a report on Tuesday, January 27th. JPMorgan Chase & Co. decreased their price target 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. Jefferies Financial Group lowered their price objective on Brown & Brown from $89.00 to $84.00 and set a "hold" rating on the stock in a report on Wednesday, January 28th. Finally, UBS Group restated a "neutral" rating and issued a $81.00 target price (down from $90.00) on shares of Brown & Brown in a report on Thursday, January 29th. Three analysts have rated the stock with a Buy rating and fifteen have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $83.60.

Brown & Brown Price Performance

BRO stock traded down $1.03 during trading on Wednesday, hitting $62.11. The company had a trading volume of 135,741 shares, compared to its average volume of 3,233,411. The firm has a market capitalization of $21.14 billion, a price-to-earnings ratio of 20.02, a P/E/G ratio of 1.80 and a beta of 0.83. The company has a current ratio of 1.66, a quick ratio of 1.66 and a debt-to-equity ratio of 0.55. The business has a 50 day moving average of $67.94 and a 200 day moving average of $75.38. Brown & Brown has a fifty-two week low of $61.65 and a fifty-two week high of $113.83.

Brown & Brown (NYSE:BRO - Get Free Report) last posted its quarterly earnings data on Monday, April 27th. The financial services provider reported $1.39 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.36 by $0.03. The business had revenue of $1.90 billion during 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 period last year, the firm posted $1.29 earnings per share. As a group, research analysts predict that Brown & Brown will post 4.54 earnings per share for the current year.

Institutional Investors Weigh In On Brown & Brown

Large investors have recently modified their holdings of the stock. Resonant Capital Advisors LLC boosted its stake in Brown & Brown by 9.9% in the 1st quarter. Resonant Capital Advisors LLC now owns 11,341 shares of the financial services provider's stock valued at $740,000 after buying an additional 1,024 shares in the last quarter. Whittier Trust Co. of Nevada Inc. grew its stake in Brown & Brown by 4.0% during the first quarter. Whittier Trust Co. of Nevada Inc. now owns 92,223 shares of the financial services provider's stock worth $6,135,000 after buying an additional 3,567 shares during the last quarter. Whittier Trust Co. increased its holdings in shares of Brown & Brown by 9.1% during the first quarter. Whittier Trust Co. now owns 196,182 shares of the financial services provider's stock worth $13,050,000 after buying an additional 16,310 shares in the last quarter. Ascentis Independent Advisors bought a new position in shares of Brown & Brown in the first quarter valued at approximately $83,000. Finally, Praxis Investment Management Inc. increased its holdings in Brown & Brown by 35.4% during the 1st quarter. Praxis Investment Management Inc. now owns 19,804 shares of the financial services provider's stock valued at $1,291,000 after purchasing an additional 5,176 shares in the last quarter. 71.01% of the stock is currently owned by institutional investors.

More Brown & Brown News

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

• Positive Sentiment: Revenue and adjusted earnings beat/strength — Total revenues rose 35.4% to ~$1.9B and Diluted Net Income Per Share — Adjusted was $1.39 (above consensus), driven by commissions, investment income and acquisition contributions. Read More.
• Positive Sentiment: Dividend declared — Board approved a quarterly cash dividend of $0.165 per share (payable May 20), which supports income investors. Read More.
• Neutral Sentiment: Organic growth flat — Organic revenue was essentially 0.0% year‑over‑year, indicating the top‑line lift was largely acquisition‑driven rather than underlying sales growth. Read More.
• Neutral Sentiment: GAAP vs. adjusted earnings divergence — GAAP diluted EPS ($1.06) was lower year‑over‑year while adjusted EPS (+7.8% y/y) topped estimates, creating headline confusion for short‑term traders. Read More.
• Neutral Sentiment: Earnings call/transcript available for details on integration and outlook — read the transcript for management commentary on Accession integration, contingents and expense outlook. Read More.
• Negative Sentiment: Analyst caution / valuation concern — A Seeking Alpha write‑up argues BRO is overvalued at current levels, cuts the price target to $58 and assigns a Hold given slowing organic growth and sector headwinds (notably flood insurance exposure). Read More.
• Negative Sentiment: Costs, margin and integration headwinds — Coverage highlights rising operating expenses, acquisition/integration costs and some margin pressure despite higher EBITDAC; those items and additional acquisition‑related debt/earn‑out payments amplify near‑term risk. Read More.

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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