Morgan Stanley Lowers Brown & Brown (NYSE:BRO) Price Target to $78.00

Brown & Brown (NYSE:BRO) had its price objective reduced by equities research analysts at Morgan Stanley from $85.00 to $78.00 in a research note issued on Thursday,Benzinga reports. The brokerage presently has an “equal weight” rating on the financial services provider’s stock. Morgan Stanley’s target price would indicate a potential upside of 8.19% from the stock’s previous close.

Several other equities analysts have also recently commented on the stock. Argus raised shares of Brown & Brown to a “hold” rating in a research report on Tuesday. Mizuho decreased their target price on Brown & Brown from $90.00 to $84.00 and set a “neutral” rating for the company in a report on Wednesday. Citigroup downgraded Brown & Brown from a “buy” rating to a “neutral” rating in a report on Monday, November 3rd. Keefe, Bruyette & Woods upgraded Brown & Brown from an “underperform” rating to a “market perform” rating and decreased their price objective for the company from $80.00 to $73.00 in a research note on Thursday. Finally, Truist Financial cut their target price on shares of Brown & Brown from $105.00 to $100.00 and set a “buy” rating on the stock in a research note on Wednesday. Three equities research analysts have rated the stock with a Buy rating and fifteen have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $90.64.

Brown & Brown Stock Performance

NYSE BRO opened at $72.09 on Thursday. The company has a debt-to-equity ratio of 0.55, a current ratio of 1.67 and a quick ratio of 2.10. The company has a market cap of $24.61 billion, a P/E ratio of 22.53, a P/E/G ratio of 2.17 and a beta of 0.81. The stock has a 50-day moving average of $79.29 and a two-hundred day moving average of $87.41. Brown & Brown has a 1-year low of $71.32 and a 1-year high of $125.68.

Brown & Brown (NYSE:BRO) last issued its quarterly earnings results on Monday, January 26th. The financial services provider reported $0.93 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.91 by $0.02. The business had revenue of $1.61 billion for the quarter, compared to analysts’ expectations of $1.65 billion. Brown & Brown had a net margin of 17.84% and a return on equity of 12.93%. The business’s quarterly revenue was up 35.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.86 earnings per share. As a group, analysts anticipate that Brown & Brown will post 4.18 EPS for the current year.

Hedge Funds Weigh In On Brown & Brown

Several hedge funds have recently added to or reduced their stakes in BRO. Cornerstone Planning Group LLC boosted its holdings in shares of Brown & Brown by 423.1% in the 3rd quarter. Cornerstone Planning Group LLC now owns 272 shares of the financial services provider’s stock valued at $26,000 after buying an additional 220 shares in the last quarter. Darwin Wealth Management LLC purchased a new stake in Brown & Brown in the second quarter valued at $30,000. Motco acquired a new position in Brown & Brown in the second quarter valued at $32,000. Board of the Pension Protection Fund purchased a new position in shares of Brown & Brown during the fourth quarter worth about $40,000. Finally, Migdal Insurance & Financial Holdings Ltd. acquired a new stake in shares of Brown & Brown during the second quarter worth about $49,000. 71.01% of the stock is currently owned by hedge funds and other institutional investors.

Key Brown & Brown News

Here are the key news stories impacting Brown & Brown this week:

• Positive Sentiment: Keefe, Bruyette & Woods upgraded BRO from “underperform” to “market perform” (price target lowered to $73), a sign some analysts view downside as limited after recent weakness. Article Title
• Positive Sentiment: Argus upgraded the stock to a “hold,” which could provide modest support as some investors interpret upgrades as a floor for further selling. Article Title
• Neutral Sentiment: Q4 results were mixed: EPS $0.93 beat consensus $0.91, while revenue of $1.61B missed estimates (~$1.65B). EPS growth was solid year-over-year, but the revenue miss and management commentary appear to have prompted downward revisions from some analysts.
• Negative Sentiment: Bank of America lowered its long-term earnings outlook and cut its price target to $90 (from $94), citing Q4 results as the catalyst for lower forward assumptions—this reduces analyst confidence in near-term growth. Article Title
• Negative Sentiment: Mizuho lowered its expectations for BRO, further signaling analyst skepticism about upside following Q4. Article Title
• Negative Sentiment: Morgan Stanley cut its price target to $78 (now equal weight), reducing the consensus view of upside and suggesting more limited near-term appreciation. Article Title
• Negative Sentiment: BMO Capital Markets lowered its price target to $81 and placed a “market perform” rating, another downward revision tightening analyst price expectations. Article Title
• Negative Sentiment: Pomerantz LLP announced an investor investigation into Brown & Brown, which raises legal/settlement risk and can pressure the stock while the probe proceeds. Article Title
• Negative Sentiment: Coverage noted BRO reached a new 12-month low after recent analyst downgrades, reflecting the cumulative impact of cuts and the investigation on investor sentiment. Article Title

Brown & Brown Company Profile

Brown & Brown, Inc (NYSE: BRO) is a professional insurance brokerage and risk advisory firm that provides a broad range of property and casualty, employee benefits, personal risk, and specialty insurance products. The company works with commercial, public sector and individual clients to design and place insurance programs, manage claims and loss control, and deliver risk management consulting. Its services also include wholesale brokerage, program administration and other specialty distribution solutions that connect carriers and intermediaries to niche markets.

Brown & Brown operates through a decentralized model of operating units and subsidiaries, enabling local client service with the scale to access national and specialty markets.