The decrease in Brown & Brown’s fair value target primarily reflects a higher discount rate while forward earnings multiples remain stable, resulting in the consensus price target being revised down from $117.55 to $111.36.
What's in the News
- Brown & Brown announced a strategic collaboration with WireX Systems to integrate cybersecurity and incident response solutions into its risk management and insurance services, aiming to deliver enhanced and measurable financial benefits for customers.
- Multiple firms, including Morgan Stanley, U.S. Bancorp, PNC Capital Markets, BMO Capital Markets, Wells Fargo, Truist Securities, and Fifth Third Securities, were added as co-lead underwriters for two Brown & Brown fixed-income offerings totaling approximately $1.3 billion.
- BMO Capital Markets and Truist Securities were added as co-lead underwriters for a $4 billion follow-on equity offering.
- Brown & Brown completed a $4 billion follow-on equity offering, issuing 39,215,686 common shares at $102 per share with a discount of $1.938 per share.
- Brown & Brown announced the acquisition of RSC.
Valuation Changes
Summary of Valuation Changes for Brown & Brown
- The Consensus Analyst Price Target has fallen from $117.55 to $111.36.
- The Discount Rate for Brown & Brown has risen from 6.40% to 6.78%.
- The Future P/E for Brown & Brown remained effectively unchanged, moving only marginally from 33.30x to 32.75x.
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