UPDATE: Goldman Sachs Initiates Brown & Brown at Sell on Macro Headwinds
Goldman Sachs initiated coverage on Brown & Brown (NYSE: BRO) with a Sell rating and a $26 price target.
Goldman Sachs commented, "We initiate coverage on Brown & Brown (BRO) with a Sell rating and a $26 price target. We believe BRO's acquisition growth potential and modestly positive organic revenue growth are attractive, but BRO's peer-high multiple more than incorporates these positive attributes and under-appreciates some macro headwinds, and we think consensus estimates for out years are too high. We believe a more appropriate multiple for BRO is closer to the peer average of 16X EPS, which implies downside of 3%."
Brown & Brown closed at $26.67 on Thursday.
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