Brown & Brown (BRO) Faces Target Reduction from Morgan Stanley Following Q1 Earnings Season

Brown & Brown, Inc. (NYSE:BRO) is included among the 10 Oversold Dividend Growth Stocks to Buy.

On May 21, Morgan Stanley lowered its price recommendation on Brown & Brown, Inc. (NYSE:BRO) to $60 from $65. It reiterated an Equal Weight rating on the stock. Analyst Bob Huang noted that most property and casualty insurance companies reported slower premium growth in the first quarter, although underwriting profits remained strong. He also expects pricing and premium growth across the sector to weaken further. Following the Q1 earnings season, Morgan Stanley adjusted its price targets for the group.

Also on May 21, Citizens analyst Matthew Carletti initiated coverage of Brown & Brown with an Outperform rating. He also set a $70 price target on the stock. Carletti said the company is likely to experience “cyclically-soft” organic growth in the near term but expects growth to improve sequentially throughout the year. In a research note, he told investors that Brown & Brown’s margins should outperform those of its peers due to its organizational structure and business mix. Citizens also believes the company is well-positioned in attractive markets.

Brown & Brown, Inc. (NYSE:BRO) is a diversified insurance agency, wholesale brokerage, insurance programs, and service organization. The company markets and sells insurance products and services, primarily in the property, casualty, and employee benefits sectors.

READ NEXT: 15 Best Dividend Paying Stocks to Buy Right Now and 10 No-Brainer Dividend Stocks to Buy

Disclosure: None. Follow Insider Monkey on Google News.