UPDATE: Morgan Stanley Reiterates On Brown & Brown As Challenges Weigh On Organic Growth

In a report published Wednesday, Morgan Stanley analyst Kai Pan reiterated an Equal-Weight rating on

, and named a $34.00 price target. In the report, Morgan Stanley noted, “We expect ~13% EPS CAGR in 2014-16e and view valuation as reasonable at 18x NTM EPS and 9.5xEV/EBITDA. BRO views its own shares as attractive as it executes on a $200m share repurchase program. However, we remain on the sideline on the stock as the company's earnings growth trajectory is less certain due to anemic organic growth, uneven margin expansion,and execution risks associated with 3 recent large acquisitions.” Brown & Brown, Inc. closed on Tuesday at $31.76.