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Research Alert: CFRA Maintains Hold Opinion On Shares Of Brown & Brown, Inc.
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Research Alert: CFRA Maintains Hold Opinion On Shares Of Brown & Brown, Inc.
May 1, 2026 9:32 AM

12:10 PM EDT, 05/01/2026 (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 to $70 from $80, valuing BRO shares at 16x our '26 EPS estimate of $4.50 and at 15x our '27 EPS estimate of $4.75 (cut today by 40.20), below the shares' one-year average forward multiple of 20x and versus the peer average forward multiple of 16x. BRO reported Q1 EPS of $1.39 (versus $1.29 a year ago) that topped our $1.37 estimate and the $1.36 consensus view, though revenue growth of 35% to $1.9B was acquisition-led with $435M from deals. Organic revenues were flat Y/Y at $1.35B, lagging our 4% to 8% growth forecast, while Q1 EBIT margins contracted to 28.0% from 30.4% due to acquisition costs and doubled interest expense. We believe the shares lack a near-term catalyst given below-peer organic growth rates and margin compression that removes BRO's historical premium valuation justification. Management also characterized business conditions as "challenging," representing a shift from last quarter's "stable" assessment. We maintain our Hold rating.

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