Update shared on20 Sep 2025
Fair value Increased 0.65%Analysts have raised Arthur J. Gallagher’s price target to $339.20, citing stronger-than-expected organic brokerage growth, materializing acquisition synergies, and the company’s resilience to softer insurance pricing, outweighing modest concerns about margin pressure.
Analyst Commentary
- Organic growth in Arthur J. Gallagher’s brokerage unit is projected to exceed previous expectations, with forecasted growth above 9% versus prior estimates of 6-8%.
- Updated acquisition and partnership (AP) synergies are materializing, supporting relatively consistent organic performance and enhancing growth visibility.
- Bullish analysts highlight that insurance brokers are expected to be “far less impacted” by the emerging softer pricing environment across the property and casualty insurance landscape, favoring the company’s business model.
- Bearish analysts cite industry-wide pressure on underwriting margins due to softening rates and unfavorable business mix, tempering near-term enthusiasm for insurance carriers but differentiating the prospects for brokers.
- Recent share price pullbacks are seen by some as a buying opportunity, underpinned by a strong pipeline of growth initiatives, including 40 term sheets representing approximately $500M in annualized revenue.
What's in the News
- The company did not repurchase any shares during the recent buyback tranche, completing zero repurchases under the program announced previously.
- Arthur J. Gallagher was added to the Russell Top 200, Russell Top 200 Growth, and Russell Top 200 Value Indices and Benchmarks.
- The company was dropped from multiple Russell Midcap indices, including Value, Growth, and Dynamic, as well as the Russell 1000 Dynamic Index.
Valuation Changes
Summary of Valuation Changes for Arthur J. Gallagher
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $337.00 to $339.20.
- The Consensus Revenue Growth forecasts for Arthur J. Gallagher has significantly risen from 19.0% per annum to 21.3% per annum.
- The Net Profit Margin for Arthur J. Gallagher has fallen slightly from 17.72% to 17.11%.
Disclaimer
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