Brown & Brown (BRO) PT Lowered to $74 at Mizuho

Mizuho analyst Yaron Kinar lowered the price target on Brown & Brown (NYSE: BRO) to $74.00 (from $84.00) while maintaining a Outperform rating.

The analyst comments "Organic growth disappointed again this quarter, with headwinds leading us to lower organic growth estimates through YE26 and the out-years. Against this, however, margins beat, and we increase our margin estimate on contra-cyclical high margin contingent commissions (CC) and expectation of the return of high margin flood claim revenues in 2H26. We also meaningfully increase our buyback estimates through YE28, to reflect strong FCF generation and a FCF margin that we expect to improve to nearly 26% by '28. We increase FY26E by $0.05, to $4.55 (in line), to reflect the 1Q beat and higher margins. Our FY27E is unchanged, at $5.00 (1% above Street), and our FY28E decreases by $0.10, to $5.65 (6% above Street), on lower revenues. We cut our PT by $10 to $74 (18% return) on the lower organic growth profile, by lowering the assigned EV/EBITDA multiple to 12.2x, in line with peers; reiterate Outperform."

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