UPDATE: Goldman Sachs Initiates Brown & Brown at Sell on Macro Headwinds

Goldman Sachs initiated coverage on Brown & Brown

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.