TD Cowen initiates coverage of Brown & Brown with Buy rating, $82 price target

Oppenheimer initiated coverage of property & casualty insurance brokers, rating Brown & Brown (BRO) Outperform and Arthur J. Gallagher (AJG) Sector Perform. The firm expects BRO's organic growth to improve, driven by the Accession acquisition, while noting durable growth prospects for brokerages. However, AJG's margin improvement is expected to stall due to integration and industry challenges.

Goldman Sachs reduced its price target for Brown & Brown from $73 to $68, maintaining a neutral rating. The company's stock closed at $60.90, up 0.50% for the day but down 1.30% for the week and 23.59% year-to-date.

Ryan Specialty beat estimates but fell 11.1% to $39.20. Brown & Brown (BRO) reported $1.68B revenue, up 30.4% YoY, missing estimates by 2.5%, and dropped 3.4% to $67.32. Arthur J. Gallagher (AJG) reported $4.00B revenue, up 24.3% YoY, missing estimates by 0.5%, and fell 3.3% to $248.05. Marsh (MRSH) reported $7.40B revenue, up 6.2% YoY, beating estimates by 1.8%, and dropped 1.2% to $179.91.

Brown & Brown (NYSE: BRO) shares rose about 5% after the company reported Q2 results. Revenue increased 30.4% year over year to $1.68B, slightly below analysts’ $1.72B estimate. Adjusted EPS was $1.07, in line with expectations, driving investor focus on strong growth despite the revenue miss.

Brown & Brown (NYSE:BRO) discussed Q2 results on its earnings call. CFO Andy Watts said Retail revenue rose 35.9% mainly from acquisitions, while Retail organic growth was pressured by a pharmacy consulting business and a litigation-related organic revenue adjustment. Specialty Distribution total revenue rose 28.1% on Accession, with EBITDAC margin down to 42.7%. BRO expects H2 Retail organic growth excluding contingents of 1.5% to 2.5% and Specialty 2% to 4%, and reaffirmed $30M-$40M integratio

Brown & Brown reported Q2 2026 revenue of $1.7 billion, up 30.4% y/y, but organic revenue fell 0.7% for the second straight quarter. Net income attributable was $288 million (+24.7%); diluted EPS was $0.84 (+7.7%). Adjusted EBITDAC was $598 million, with margin down to 35.7%. Costs rose from acquisitions and interest expense tied to the RSC Topco/Accession deal.