Brown & Brown Gets Downgraded But Analyst Still Vouches For Long-Term Growth

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Morgan Stanley analyst Bob Jian Huang downgraded Brown & Brown, Inc. ( BRO ) to Equal-weight from Overweight and maintained a price forecast of $128.

The analyst writes that while he remains confident in Brown & Brown's ( BRO ) long-term growth and margin potential, the strong year-to-date stock performance limits its attractiveness.

Meanwhile, the analyst notes that Brown & Brown's ( BRO ) stock has risen ~16% year-to-date, making it the top performer among P&C brokers in the coverage, driven by strong fourth-quarter results, sustained momentum, and its defensive appeal in a volatile market.

Huang continues to expect mid to high single digit organic top-line growth in 2025 and 2026 partly led by Programs and Wholesale Brokerage segments.

Also, strong and stable growth is expected, supporting an industry-leading Adjusted EBITDAC margin of mid-30s in both 2025 and 2026, adds the analyst.

The analyst attributed the downgrade to the company gradually earning into its current valuation. Meanwhile, for the longer term, the analyst notes the fundamentals will surpass peers.

Investors can gain exposure to the stock via Motley Fool Mid-Cap Growth ETF and Guru Favorite Stocks ETF ( GFGF ) .

Price Action: BRO shares are up 0.16% at 4121.17 at the last check Tuesday.

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