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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.
Nov 3, 2025 8:28 AM

11:15 AM EST, 11/03/2025 (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 lower our 12-month target price by $12 to $90, valuing BRO shares at 18x our newly initiated 2027 EPS estimate of $5.10 and at 20x our 2026 EPS estimate of $4.60 (upped today by $0.10). We also raise our 2025 EPS estimate by $0.11 to $4.25. BRO posted Q3 EPs of $1.05 versus $0.91, topping our $0.94 EPS estimate and the $0.93 consensus view, on an acquisition-driven 35% rise in Q3 revenues, partly offset by a significant margin contraction. Q3 EBIT margins contracted to 19.4% from 26.7% a year ago, while Q3 net margins were 14.1% from 19.7% a year ago. We attribute the recent weakness in the shares (which are down nearly 22% YTD through October 31, 2025) to this margin contraction, since we believe BRO's ability to maintain margins in excess of peer averages supported the shares' premium valuation to peers. We believe that margin contraction, coupled with BRO's Q3 organic revenue growth of 3.5% (below the peer average of around 5% to 8%), removes a catalyst fro the shares.

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