11:15 AM EDT, 03/25/2025 (MT Newswires) -- Brown & Brown ( BRO ) faces limited near-term upside relative to peers amid macro uncertainties, Morgan Stanley said Tuesday in a note.

The insurance company's "valuation is a bit too hot," and the strong year-to-date stock performance makes the shares "less attractive," Morgan Stanley said.

"Longer term, we continue to believe the fundamentals will outpace peers," and "we are big believers" in the long-term growth and margin outlook, the report said.

Morgan Stanley downgraded its rating on Brown & Brown ( BRO ) stock to equalweight from overweight and retained its price target of $128.

Brown & Brown ( BRO ) shares rose 0.5% in recent Tuesday trading.

Price: 121.52, Change: +0.54, Percent Change: +0.45