Brown & Brown Rallied 14% After Earnings But Growth Could Decelerate, Analyst Says
Portfolio Pulse from Priya Nigam
Shares of Brown & Brown, Inc. (NYSE:BRO) rallied 14% following its earnings announcement and new fiscal 2024 revenue target, outperforming its peers and the S&P 500. However, BofA Securities analyst Grace Carter downgraded the stock from Neutral to Underperform, despite raising the price target from $80 to $86, citing potential deceleration in growth as inflation slows. Carter predicts Brown & Brown's growth will align with historical levels in the coming years, with expected growth rates of 6.4% and 4.6% for 2024 and 2025, respectively.
March 13, 2024 | 6:59 pm
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Brown & Brown, Inc. saw a 14% rally after announcing earnings and a new revenue target for fiscal 2024, but faces a downgrade from Neutral to Underperform by BofA Securities, with a raised price target from $80 to $86.
The downgrade by BofA Securities, despite the recent rally and raised price target, indicates a bearish outlook on the stock's future performance. The analyst's concerns about growth deceleration due to slowing inflation and the prediction of growth aligning with historical levels suggest potential headwinds for the stock. This analysis, combined with the stock's recent performance, suggests a short-term negative impact on BRO's stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100