Piper Jaffray Starts Arthur J. Gallagher (AJG) at Overweight

Piper Jaffray initiates coverage on Arthur J. Gallagher (NYSE: AJG) with a Overweight rating and a price target of $58.00.

Analyst Daniel Farrell commented, "Through some recent larger M&A activity, AJG has built scale platforms in the UK, Australia/NZ and Canada, which complement its already sizable US business and provide multiple platforms to take advantage of an active smaller M&A environment globally. With cash flow ramping, these smaller deals should increasingly be funded with organic cash generation versus stock/debt going forward. Additionally, the company has shown solid core trends in organic growth and margin across its business and further upside to cash tax credits generated from clean energy investments. Valuation is attractive, in our view, with the stock trading at a discount to the group on both a cash P/E and EV/EBITDA basis."

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 $48.25 yesterday.

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