Barclays Reiterates an 'Overweight' on Arthur J. Gallagher (AJG); Well Positioned for Firming P&C Market
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Price: $251.21 -0.9%
Rating Summary:
20 Buy, 9 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
20 Buy, 9 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Barclays reiterates an 'Overweight' on Arthur J. Gallagher (NYSE: AJG) price target of $35.00.
Barclays analyst says, "We met with AJG's management team including its CEO & CFO. Commercial P&C pricing could be flat to slightly higher at the January 1, 2012 renewals (in line with our view) and exposure growth is stabilizing. We expect AJG to benefit from higher P&C prices similar to the other insurance brokers, which should result in improved earnings and margins. Roughly 80% of AJG's revenues are commission-based, which means the company has significant leverage to higher P&C prices."
"AJG currently trades at 19x our 2012E EPS of $1.70, which is above peers and its historical median of 16x, and a 58% premium to the S&P 500 P/E, which is near its all-time historical high. However, AJG's valuation multiple could increase as P&C prices rise. Also, the company's current dividend yield is robust at 4%."
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 $32.40 yesterday.
Barclays analyst says, "We met with AJG's management team including its CEO & CFO. Commercial P&C pricing could be flat to slightly higher at the January 1, 2012 renewals (in line with our view) and exposure growth is stabilizing. We expect AJG to benefit from higher P&C prices similar to the other insurance brokers, which should result in improved earnings and margins. Roughly 80% of AJG's revenues are commission-based, which means the company has significant leverage to higher P&C prices."
"AJG currently trades at 19x our 2012E EPS of $1.70, which is above peers and its historical median of 16x, and a 58% premium to the S&P 500 P/E, which is near its all-time historical high. However, AJG's valuation multiple could increase as P&C prices rise. Also, the company's current dividend yield is robust at 4%."
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 $32.40 yesterday.
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