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BRO: Equity Buyback Authorization And 10% Dividend Increase Will Drive Upside

Analysts Maintain Price Target as Brown and Brown Updates Buyback and Valuation Forecasts

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BRO
AnalystConsensusTarget
Not Invested
Published 08 Aug 2024

Update shared on 24 Nov 2025

Fair value Decreased 3.69%
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3.3%

Analysts have slightly reduced their price target for Brown & Brown from $97.08 to $93.50. They cite modest adjustments in valuation assumptions and updated growth forecasts as the reasons for this change.

What's in the News

  • Brown & Brown increased its equity buyback authorization by $1,251 million, raising the total to $2,023.5 million. (Key Developments)
  • The company completed the repurchase of 16,529,102 shares for $522.96 million under the buyback plan originally announced in 2015. (Key Developments)
  • Brown & Brown is seeking acquisitions, with an active M&A pipeline both domestically and internationally, according to recent executive commentary. (Key Developments)
  • The board declared a regular quarterly cash dividend of $0.165 per share. This marks a 10% increase and the company’s 32nd consecutive annual dividend increase. (Key Developments)

Valuation Changes

  • The consensus analyst price target has fallen modestly from $97.08 to $93.50 per share.
  • The discount rate has risen slightly from 6.78% to 6.96%.
  • The revenue growth forecast decreased marginally from 18.68% to 18.54%.
  • The net profit margin has inched higher, moving from 17.93% to 17.99%.
  • The future P/E ratio declined from 30.80x to 29.82x.

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Disclaimer

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