UPDATE: Compass Point Initiates Arthur J. Gallagher & Co. at Buy on Multiple Positive Factors

In a report published Tuesday, Compass Point analyst Ken Billingsley initiated coverage on Arthur J. Gallagher & Co. AJG with a Buy rating and $50.00 price target.

In the report, Compass Point noted, “AJG shares have traded up nicely since the middle of 2011. A hardening P&C market, accelerated M&A activity at the end of 2012, and a growing although anemic economic recovery are all contributing to the strength in AJG shares. We expect further upward movement in the share price as operating margins continue to improve, M&A expansion adds revenues to the top line, and the company's clean energy investments begin to consistently deliver on their tax savings promise.”

Arthur J. Gallagher & Co. closed on Monday at $44.85.