Deutsche Bank Remains Bullish on Arthur J. Gallagher (AJG) Following December Investor Meeting

Deutsche Bank reiterated a Buy rating and $51.00 price target on Arthur J. Gallagher (NYSE: AJG) following an investor meeting. management clearly articulated that the material share dilution experienced in 2014 and 2015 driven by capital needs to fund several larger international broker acquisitions would be far less material in 2016.

Analyst Joshua Shanker commented, "At the December 16 investor meeting management clearly articulated that the material share dilution experienced in 2014 and 2015 driven by capital needs to fund several larger international broker acquisitions would be far less material in 2016. However, shareholders will likely remain focused on the guidance that Brokerage core commissions and fees organic growth in 2016 would be in the low-single digit range. With a nearly 8% free cash flow yield and the stock trading at 9.6x EV/EBITDA, the valuation continues to augur for material upside. Reiterate Buy."

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 $41.15 yesterday.

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