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Investing.com - BofA Securities upgraded Brown & Brown (NYSE:BRO) from Neutral to Buy on Wednesday, while raising its price target to $130.00 from $126.00.
The upgrade comes after Brown & Brown shares have fallen 26% since April 2, during a period when the S&P 500 has appreciated 13%, representing one of the most significant periods of underperformance in the company’s history.
BofA Securities noted that the stock is now trading near trough valuations relative to insurance broker peers, whereas it has typically traded at a premium. The company maintains strong fundamentals with a 49.42% gross profit margin and healthy revenue growth of 12.16% over the last twelve months. InvestingPro analysis indicates the stock is currently fairly valued based on its proprietary Fair Value model.
The firm’s earnings per share forecasts for Brown & Brown exceed current consensus estimates, with analysts believing that second-quarter 2025 results have reset the outlook to a more steady-state growth rate.
BofA Securities sees material upside potential to their price objective, making Brown & Brown shares attractive at current levels.
In other recent news, Brown & Brown Inc. reported its financial results for the second quarter of 2025, surpassing analysts’ expectations. The company achieved earnings per share of $1.03, exceeding the forecasted $0.99. Revenue also performed well, coming in at $1.29 billion, which was above projections. Despite these strong earnings and revenue figures, the company’s stock experienced a decline in premarket trading. This movement occurred amid broader market concerns and challenges specific to the sector. Analysts from various firms have noted these developments, providing their insights on the company’s performance. The earnings report highlights the company’s continued ability to exceed market expectations in a challenging environment.
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