Deutsche Bank Starts Brown & Brown (BRO) at Buy; Headwinds Abating

Deutsche Bank initiates coverage on Brown & Brown (NYSE: BRO) with a Buy. PT $27.00.

Deutshe analyst said, "With a group-low EV/EBITDA valuation after 19 quarters of organic revenue declines, investor expectations for BRO are low. We view the declines as emblematic of a temporary confluence of external pressures that hampered Brown's growth more severely given its geographic weighting, mid-market focus and commission-oriented revenue. With many of these pressures alleviating and with weak prior-year comps, we expect growth to resume in 2012, providing earnings upside surprise and justifying a multiple reversion to the group mean."

For an analyst ratings summary and ratings history on Brown & Brown click here. For more ratings news on Brown & Brown click here.

Shares of Brown & Brown closed at $22.58 yesterday.

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