Brown & Brown (BRO) PT Raised to $117 at CFRA

CFRA analyst Catherine Seifert raised the price target on Brown & Brown (NYSE: BRO) to $117.00 (from $112.00) while maintaining a Hold rating.

The analyst comments "We lift our 12-month target price by $5, to $117, valuing the shares at 26x our '26 EPS estimate of $4.50 (raised today by $0.10) and 28.5x our '25 EPS estimate of $4.10 (upped by $0.05), versus the 1-year average forward multiple of 25x and a peer average of 22.5x. Q4 adjusted EPS of $0.86 versus $0.69 (restated) topped our $0.78 estimate and the $0.77 consensus view on 15% revenue growth (versus our 10%-15% growth forecast) that included an above-peer 14% rate of organic growth. '24 EPS of $3.84 versus $3.25 (restated) topped our $3.76 estimate and matched the $3.84 consensus view, before asset disposal losses of $0.02 versus $0.35. Revenues rose 13% in '24 (10% organic growth), and we see revenue growth of 10%-15% in '25 as BRO leverages a healthy insurance pricing and demand environment. Weighing BRO's strong rate of organic revenue growth with its lack of margin improvement and its premium valuation versus peers, we view the shares as fairly valued but worth holding on good insurance fundamentals."

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