UPDATE: Goldman Sachs Initiates Arthur J Gallagher at Neutral

Goldman Sachs initiated coverage on Arthur J Gallagher

with a Neutral rating and a $39 price target. Goldman Sachs noted, "We initiate coverage on Arthur J. Gallagher (AJG) with a Neutral rating and a $39 price target, implying 7% upside. The company is poised to grow earnings faster than peers on average and we like its M&A growth potential. M&A is a major driver of growth and AJG has a systematic approach to finding and integrating accretive small-scale acquisitions. It has completed nearly 300 deals since 1985. Gallagher is well positioned as one of only a few brokers that acquire businesses from retiring baby boomers. This is a fragmented business as there are thousands of local brokers available and we think AJG will benefit from consolidation." Arthur J Gallagher closed at $36.30 on Thursday.