KBW Raises Target on Brown & Brown, But Kept Bearish Stance

Keefe, Bruyette & Woods bumped its price target on Brown & Brown (NYSE:BRO) from $100 to $102 on June 13, but kept its Underperform rating in place. The change came on the heels of the company’s announced acquisition of Accession, which is expected to close by mid-Q3 2025.

The firm raised its earnings estimates in response to the deal. The 2025 EPS forecast was increased to $4.15 (from $4.10), and 2026 to $4.75 (from $4.50). KBW also introduced a 2027 EPS forecast of $5.25. Most of the upside is tied to higher expected revenue and earnings from the acquisition, though KBW pointed to offsetting factors like higher interest costs and a rising share count.

Despite the upward revisions, KBW isn’t shifting its view on the stock. The Underperform rating stays in place due to concerns about near-term organic growth. The firm pointed to Q2 2025 as a key pressure point — property insurance rates are expected to decline, and those numbers will be going up against strong comps from Q2 2024. That could make year-over-year growth look weak, even if the fundamentals remain stable.

Not everyone agrees with KBW. We recently shared a bullish thesis on BRO stock.

While we acknowledge the potential of BRO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None.