BMO Capital Downgrades Brown & Brown (BRO) to Underperform Amid Slow EPS Growth
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BMO Capital downgraded Brown & Brown (NYSE: BRO) from Market Perform to Underperform with a price target of $37.00 (from $39.00), saying major contraction slows EPS growth pressuring valuation.
Analyst Charles Sebaski, "We are downgrading shares of BRO to Under Perform and lowering our target price to $37. We expect margin pressures and lack of capital management to continue to hold back EPS growth at Brown to the mid-single digits in 2017 and 2018. This level is below the rest of our covered brokers and offers less of a distinction to the broader market for which our valuations are based."
Shares of Brown & Brown closed at $36.54 yesterday.
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