Do Wall Street Analysts Like Brown & Brown Stock?

Headquartered in Daytona Beach, Florida, Brown & Brown, Inc. (BRO) is a prominent leader in the insurance industry, providing a wide range of risk management solutions, insurance products, and services to individuals and businesses. With a market cap of $32 billion, Brown & Brown leverages its expertise and innovative approach to help clients navigate complex risks, protect assets, and achieve financial peace of mind. 

Shares of this insurance brokerage firm have climbed 52.2% over the past 52 weeks, exceeding the broader S&P 500 Index ($SPX), which rallied 32.1% over the past year. In 2024, BRO’s stock rose 26.9%, compared to SPX’s 26.2% rise on a YTD basis. 

Narrowing the focus, BRO outperformed the SPDR S&P Insurance ETF (KIE). The exchange-traded fund has gained 37.1% over the past year.

www.barchart.com

On Nov. 1, Brown & Brown completed its acquisition of Quintes Holding B.V.'s insurance operations, a strategic move aimed at bolstering its international footprint and enhancing service capabilities. This acquisition reflects the company’s focus on long-term growth despite the integration and regulatory challenges involved.

BRO stock rose 1.6% after the company released its Q3 earnings on Oct. 28, underscoring solid financial performance. Total revenues reached $1.19 billion, significantly exceeding expectations and representing an 11% year-over-year growth. Adjusted EPS rose 12.3% annually to $0.91, slightly ahead of the consensus estimate of $0.87. Additionally, EBITDAC-Adjusted climbed 11.9% to $414 million, highlighting the company’s solid operational execution and growth trajectory.

For the current fiscal year, ending in December, analysts expect Brown & Brown’s EPS to grow 33.1% to $3.74 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.

Among the 15 analysts covering BRO stock, the consensus is a “Moderate Buy.” That’s based on six “Strong Buy” ratings, two “Moderate Buys,” six “Holds,” and one “Moderate Sell.”

www.barchart.com

This configuration is more bullish than three months ago, with five analysts suggesting a “Strong Buy.”

On Nov. 21, Barclays (BCSraised Brown & Brown's price target to $119 from $108, citing updated organic growth assumptions after Q3 earnings and industry pricing data while maintaining an “Equal-Weight” rating.

Although the stock trades at a premium to the mean price target of 113, the Street-high price target of $125 suggests an upside potential of 10.2% to current price levels.

On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.