Zinger Key Points
Morgan Stanley downgrades Brown & Brown to Equal-weight, citing limited upside after 16% YTD rally. Analyst still expects strong organic growth and mid-30s Adj. EBITDAC margin through 2026. Pelosi’s latest AI pick skyrocketed 169% in just one month. Click here to discover the next stock our government trade tracker is spotlighting—before it takes off.Morgan Stanley analyst Bob Jian Huang downgraded Brown & Brown, Inc. BRO to Equal-weight from Overweight and maintained a price forecast of $128 .
The analyst writes that while he remains confident in Brown & Brown's long-term growth and margin potential, the strong year-to-date stock performance limits its attractiveness.
Meanwhile, the analyst notes that Brown & Brown's stock has risen ~16% year-to-date, making it the top performer among P&C brokers in the coverage, driven by strong fourth-quarter results, sustained momentum, and its defensive appeal in a volatile market.
Huang continues to expect mid to high single digit organic top-line growth in 2025 and 2026 partly led by Programs and Wholesale Brokerage segments.
Also, strong and stable growth is expected, supporting an industry-leading Adjusted EBITDAC margin of mid-30s in both 2025 and 2026, adds the analyst.
The analyst attributed the downgrade to the company gradually earning into its current valuation. Meanwhile, for the longer term, the analyst notes the fundamentals will surpass peers.
Investors can gain exposure to the stock via Motley Fool Mid-Cap Growth ETF TMFM and Guru Favorite Stocks ETF GFGF .
Price Action: BRO shares are up 0.16% at 4121.17 at the last check Tuesday.
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BRO Brown & Brown Inc $121.34 0.30%Stock Score Locked: Want to See it?
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Reveal Full ScoreEdge Rankings
Momentum 89.68 Growth 68.25 Quality 90.41 Value 15.81Price Trend
Short Medium Long Overview GFGF Guru Favorite Stocks ETF $29.08 -6.53% TMFM Motley Fool Mid-Cap Growth ETF $25.66 0.11% Market News and Data brought to you by Benzinga APIs© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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