UPDATE: Barclays Downgrades Arthur J. Gallagher (AJG) to Equalweight; P&C Price Increases Peak
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Price: $44.48 -0.4%
Rating Summary:
8 Buy, 7 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
8 Buy, 7 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade AJG Now!
(Updated - July 31, 2012 2:29 PM EDT)
Barclays downgraded Arthur J. Gallagher (NYSE: AJG) from Overweight to Equalweight with a price target of $38.00 (from $40.00).
Analyst, Jay Gelb, said, "Commercial P&C insurance pricing increased 4% y/y on average in 2Q12, in line with the pace of rate increases in the prior quarter. This means the pace of rate increases did not accelerate vs the prior quarter for the first time since 3Q11, according to the latest survey by the Council of Insurance Agents & Brokers. We view this data point as a negative development for the insurance brokers because these stocks are early P&C cycle plays. As a result, we downgrade both Brown & Brown (NYSE: BRO) and AJG."
FY12/13 EPS estimates lowered by $0.05, to $1.75/$2.05, respectively.
Gelb's Top Picks in P&C insurance are Ace Ltd (NYSE: ACE) and Arch Capital Group Ltd. (Nasdaq: ACGL)
For an analyst ratings summary and ratings history on Arthur J. Gallagher click here. For more ratings news on Arthur J. Gallagher click here.
Shares of Arthur J. Gallagher closed at $36.04 yesterday, with a 52 week range of $24.29-$38.24.
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Barclays downgraded Arthur J. Gallagher (NYSE: AJG) from Overweight to Equalweight with a price target of $38.00 (from $40.00).
Analyst, Jay Gelb, said, "Commercial P&C insurance pricing increased 4% y/y on average in 2Q12, in line with the pace of rate increases in the prior quarter. This means the pace of rate increases did not accelerate vs the prior quarter for the first time since 3Q11, according to the latest survey by the Council of Insurance Agents & Brokers. We view this data point as a negative development for the insurance brokers because these stocks are early P&C cycle plays. As a result, we downgrade both Brown & Brown (NYSE: BRO) and AJG."
FY12/13 EPS estimates lowered by $0.05, to $1.75/$2.05, respectively.
Gelb's Top Picks in P&C insurance are Ace Ltd (NYSE: ACE) and Arch Capital Group Ltd. (Nasdaq: ACGL)
For an analyst ratings summary and ratings history on Arthur J. Gallagher click here. For more ratings news on Arthur J. Gallagher click here.
Shares of Arthur J. Gallagher closed at $36.04 yesterday, with a 52 week range of $24.29-$38.24.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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