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Headquartered in Daytona Beach, Florida, Brown & Brown, Inc. (BRO) is a prominent leader in the insurance industry, providing a wide range of risk management solutions, insurance products, and services to individuals and businesses. With a market cap of $32 billion, Brown & Brown leverages its expertise and innovative approach to help clients navigate complex risks, protect assets, and achieve financial peace of mind.
Shares of this insurance brokerage firm have climbed 52.2% over the past 52 weeks, exceeding the broader S&P 500 Index ($SPX), which rallied 32.1% over the past year. In 2024, BRO’s stock rose 26.9%, compared to SPX’s 26.2% rise on a YTD basis.
Narrowing the focus, BRO outperformed the SPDR S&P Insurance ETF (KIE). The exchange-traded fund has gained 37.1% over the past year.
On Nov. 1, Brown & Brown completed its acquisition of Quintes Holding B.V.'s insurance operations, a strategic move aimed at bolstering its international footprint and enhancing service capabilities. This acquisition reflects the company’s focus on long-term growth despite the integration and regulatory challenges involved.
BRO stock rose 1.6% after the company released its Q3 earnings on Oct. 28, underscoring solid financial performance. Total revenues reached $1.19 billion, significantly exceeding expectations and representing an 11% year-over-year growth. Adjusted EPS rose 12.3% annually to $0.91, slightly ahead of the consensus estimate of $0.87. Additionally, EBITDAC-Adjusted climbed 11.9% to $414 million, highlighting the company’s solid operational execution and growth trajectory.
For the current fiscal year, ending in December, analysts expect Brown & Brown’s EPS to grow 33.1% to $3.74 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 15 analysts covering BRO stock, the consensus is a “Moderate Buy.” That’s based on six “Strong Buy” ratings, two “Moderate Buys,” six “Holds,” and one “Moderate Sell.”
This configuration is more bullish than three months ago, with five analysts suggesting a “Strong Buy.”
On Nov. 21, Barclays (BCS) raised Brown & Brown's price target to $119 from $108, citing updated organic growth assumptions after Q3 earnings and industry pricing data while maintaining an “Equal-Weight” rating.
Although the stock trades at a premium to the mean price target of 113, the Street-high price target of $125 suggests an upside potential of 10.2% to current price levels.
