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UPDATE: Stifel Nicolaus Upgrades Brown & Brown to Buy on Margin Improvement

Related BRO
Earnings Scheduled For October 19, 2015
Benzinga's Top Downgrades

Stifel Nicolaus raised its rating on Brown & Brown (NYSE: BRO) from Hold to Buy and established a $32 price target.

Stifel Nicolaus noted, "We're raising our rating on BRO's shares to Buy from Hold, with a 12-month target price of $32 per share, driven by three factors: 1. BRO's 2013 contingent commissions (which typically carry 90%-plus margins) should grow significantly in response to the domestic insurance industry's improving underwriting profitability YTD in 2012. 2. Several of BRO's largest states are showing signs of economic stabilization and growth, which should steadily translate into revenue growth and margin expansion. 3. Recent signs of accelerating medical cost inflation should translate into worsening loss reserve development for several commercial casualty lines of business, which should accelerate rate increases."

Brown & Brown closed at $25.15 on Wednesday.

Latest Ratings for BRO

Oct 2015Wells FargoDowngradesOutperformMarket Perform
Jun 2015Piper JaffrayInitiates Coverage onOverweight
Apr 2015Keefe Bruyette & WoodsDowngradesOutperformMarket Perform

View More Analyst Ratings for BRO
View the Latest Analyst Ratings

Posted-In: Stifel NicolausAnalyst Color Upgrades Intraday Update Analyst Ratings


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