Brown & Brown (NYSE:BRO) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Tuesday. The firm presently has a $34.00 target price on the financial services provider’s stock. Zacks Investment Research‘s price objective would indicate a potential upside of 15.14% from the stock’s current price.

According to Zacks, “Shares of Brown & Brown have outperformed the industry year to date. Brown & Brown’s compelling portfolio with impressive growth is driven by organic and inorganic initiatives. Plus, a solid capital position drives the company well for long- term growth. A solid performance is boosting cash flow, which should help the company deploy capital in shareholder-friendly moves. However, increased financial leverage and an exposure to currency exchange rate fluctuations are headwinds. Also, heavy dependence on limited clients for commission revenues raises caution. Moreover, escalating expenses are likely to hurt margins. The company has not witnessed any earnings movement for its 2018 and 2019 estimates in the last 60 days.”

A number of other research analysts have also issued reports on the company. Citigroup set a $27.00 target price on Brown & Brown and gave the company a “sell” rating in a research report on Wednesday, September 19th. Morgan Stanley raised their price objective on Brown & Brown from $26.00 to $28.00 and gave the company an “underweight” rating in a report on Tuesday, August 14th. Credit Suisse Group initiated coverage on Brown & Brown in a report on Tuesday, August 7th. They issued a “neutral” rating and a $31.00 price objective on the stock. Royal Bank of Canada restated a “hold” rating and issued a $30.00 price objective on shares of Brown & Brown in a report on Wednesday, July 25th. Finally, SunTrust Banks restated a “buy” rating and issued a $33.00 price objective on shares of Brown & Brown in a report on Tuesday, July 24th. Three research analysts have rated the stock with a sell rating, seven have assigned a hold rating and four have assigned a buy rating to the company. The stock presently has an average rating of “Hold” and an average price target of $28.46.

Shares of NYSE:BRO opened at $29.53 on Tuesday. Brown & Brown has a 1 year low of $24.03 and a 1 year high of $31.55. The company has a market cap of $8.29 billion, a PE ratio of 27.24, a price-to-earnings-growth ratio of 2.44 and a beta of 0.69. The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.98 and a current ratio of 0.98.

Brown & Brown (NYSE:BRO) last announced its earnings results on Monday, July 23rd. The financial services provider reported $0.26 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.28 by ($0.02). Brown & Brown had a net margin of 22.25% and a return on equity of 11.75%. The business had revenue of $473.10 million for the quarter, compared to analysts’ expectations of $472.74 million. During the same quarter last year, the business earned $0.25 EPS. The company’s quarterly revenue was up 1.5% on a year-over-year basis. sell-side analysts expect that Brown & Brown will post 1.22 EPS for the current fiscal year.

A number of hedge funds have recently made changes to their positions in BRO. Bruderman Asset Management LLC purchased a new position in shares of Brown & Brown during the 2nd quarter worth $117,000. Itau Unibanco Holding S.A. purchased a new position in shares of Brown & Brown during the 2nd quarter worth $144,000. SevenBridge Financial Group LLC raised its holdings in shares of Brown & Brown by 100.0% during the 1st quarter. SevenBridge Financial Group LLC now owns 6,654 shares of the financial services provider’s stock worth $169,000 after acquiring an additional 3,327 shares during the period. Rowland & Co. Investment Counsel ADV purchased a new position in shares of Brown & Brown during the 2nd quarter worth $183,000. Finally, Palladium Partners LLC purchased a new position in shares of Brown & Brown during the 2nd quarter worth $211,000. Institutional investors own 71.94% of the company’s stock.

Brown & Brown Company Profile

Brown & Brown, Inc markets and sells insurance products in the United States, England, Canada, Bermuda, and the Cayman Islands. Its Retail segment offers property insurance relating to physical damage to property and resultant interruption of business, or extra expense caused by fire, windstorm, or other perils; casualty insurance relating to legal liabilities, professional liability, cyber-liability, workers' compensation, and commercial and private passenger automobile coverages; fidelity and surety bonds; and life, accident, disability, health, hospitalization, medical, dental, and other ancillary insurance products, as well as risk management, loss control surveys and analysis, consultation, and claims processing services.

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