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With a market cap of $24.1 billion, Brown & Brown, Inc. (BRO) is a leading global insurance brokerage firm that has provided comprehensive, customized insurance solutions. With more than 700 locations worldwide and over 23,000 professionals, the company delivers scalable and innovative insurance strategies tailored to customers’ evolving needs.
The investment bank's shares have lagged behind the broader market over the past 52 weeks. BRO stock has decreased 25.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 19.5%. Moreover, shares of the company are down 9.6% on a YTD basis, compared to SPX’s 11.6% gain.
In addition, shares of the Daytona Beach, Florida-based company have also underperformed the State Street Financial Select Sector SPDR ETF’s (XLF) 7.7% return over the past 52 weeks and a nearly 4% YTD rise.
Brown & Brown has underperformed due to slow organic growth, a softer insurance pricing cycle, and weaker sales momentum despite solid earnings growth. The company also faces greater competition in the middle-market, an intensifying battle for talent, and exposure to the Florida property insurance market, adding to concerns.
For the fiscal year ending in December 2026, analysts expect Brown & Brown’s adjusted EPS to grow 5.6% year-over-year to $4.50. The company’s earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing on another occasion.
Among the 22 analysts covering the stock, the consensus rating is a “Hold.” That’s based on three “Strong Buy” ratings, one “Moderate Buy,” 17 “Holds,” and one “Moderate Sell.”
This configuration is slightly less bullish than three months ago, with four “Strong Buy” ratings on the stock.
On Aug. 19, Morgan Stanley increased its price target on Brown & Brown to $60 but maintained an “Underweight” rating.
The mean price target of $76.70 represents a premium of 6.4% to BRO's current price. The Street-high price target of $90 suggests a 24.9% potential upside.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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