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Research Alert: CFRA Keeps Hold Opinion On Shares Of Brown & Brown Inc.
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Research Alert: CFRA Keeps Hold Opinion On Shares Of Brown & Brown Inc.
Jul 30, 2025 4:28 AM

07:10 AM EDT, 07/30/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our 12-month target price by $15, to $102, valuing BRO shares at 22.7x our 2026 EPS estimate of $4.50, versus their three-year average forward multiple of 25x and a peer average of 21x. We raise our 2025 EPS estimate by $0.04, to $4.14 after BRO posted Q2 2025 EPS of $1.03 vs. $0.93 in Q2 2024, topping our EPS estimate and the consensus view of $0.99. Despite the earnings beat, BRO shares have come under pressure, as revenue growth in Q2 slowed to 9.1%, with organic revenue growth of only 3.6%. We now see 2025 revenue growth of 8% to 12% (4% to 8% organic), down from our previous estimate of 10% to 15% (6% to 12% organic). Our view of the shares is also tempered by the contraction in Q2 net margins (to 18.0% from 21.8% a year ago). BRO shares have historically traded at a premium to peers, refecting the firm's above-peer level of top line growth and profitability. With both of these metrics eroding, we think the shares lack a catalyst and would not add to positions even after their recent decline.

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