Arthur J. Gallagher (AJG) PT Lowered to $250 at Keefe, Bruyette & Woods

Keefe, Bruyette & Woods analyst Meyer Shields lowered the price target on Arthur J. Gallagher (NYSE: AJG) to $250.00 (from $271.00) while maintaining a Market Perform rating.

The analyst commented: "We maintain our Market Perform rating on AJG’s shares and lower our target price to $250 (17.0x our 2027E EPS) from $271 following its 3Q26 investor update, during which it lowered its 2026E Brokerage organic growth rate to about 5% from about 5.5% (mostly due to including AssuredPartners’ 4Q26E organic growth within the consolidated forecast) and maintained its 2026E Risk Management organic growth. We lower our 2026E/2027E/2028E EPS to $13.10/$14.65/$16.45 from $13.25/$14.85/$16.65, mostly reflecting slower 2H26E Brokerage organic growth, slightly more divested Brokerage revenue, slower near-term Brokerage M&A, and higher (noncash) Corporate expenses, partly offset by modestly higher Risk Management revenues and earnings. In the near-term, we expect slowly-decelerating middle-market P&C pricing to constrain overall organic growth, likely limiting the shares’ upside."

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