BGB Securities Reiterates Buy, $28 Target on Brown & Brown

BGB Securities maintains its Buy rating and $28 target price on Brown & Brown

as the company's Arrowhead acquisition is one of its largest. BGB Securities says, "The acquisition of Arrowhead General Insurance Agency for $400M (including contingent commissions) will expand the company's presence within program and service business with a greater concentration in western U.S. states. The deal terms are on the expensive side for what BRO typically has been willing to pay, with a larger portion of the deal in a guaranteed payout. However, according to management, the deal will add $0.06 to $0.09 to BRO's 2012E EPS." BRO closed at $21.74 per share on Thursday.