Nebius Group prices $1 billion share offering at $92.50 per share
Investing.com - Goldman Sachs has reinstated coverage on Arthur J. Gallagher (NYSE:AJG) with a Buy rating and a $344.00 price target following the company’s acquisition of AssuredPartners. The insurance broker, currently valued at $77.6 billion, is trading at $302.57 with a P/E ratio of 44.1x. According to InvestingPro analysis, the stock is currently trading above its Fair Value, though it maintains strong financial metrics with an overall health score rated as "GOOD."
The insurance broker completed its acquisition of AssuredPartners on August 18, 2025, marking the largest acquisition in the company’s history. Goldman Sachs expects the deal to deliver high-single-digit accretion to its 2027 earnings per share estimates.
The firm’s Buy rating is based on expectations for 21% compound annual revenue growth through 2027, which is twice the peer average. Goldman Sachs also anticipates peer-high organic revenue growth of 5.5% in 2026 and above-peer margin expansion.
Goldman Sachs acknowledges some integration risk with the AssuredPartners acquisition but believes the outlined synergies are achievable. The firm cites Arthur J. Gallagher’s successful track record of integrating more than 750 deals since 2002 as evidence of its integration capabilities.
The price target of $344 represents a 15% total return opportunity, according to Goldman Sachs, which also expressed optimism about Arthur J. Gallagher’s organic growth prospects supported by approximately 4.5%+ nominal GDP, peer-high net-new business generation, and positive pricing conditions through 2026.
In other recent news, Arthur J. Gallagher & Co. reported its Q2 2025 earnings, which showed a slight miss in both earnings per share (EPS) and revenue compared to forecasts. The company posted an adjusted EPS of $2.33, falling short of the expected $2.36, and reported revenue of $3.17 billion, below the projected $3.21 billion. In addition to the earnings report, Arthur J. Gallagher & Co. finalized its acquisition of AssuredPartners, a prominent U.S. insurance broker, enhancing its operations in the United States, United Kingdom, and Ireland. The company also announced the acquisition of MACK Insurance Services, an Australian commercial insurance broker specializing in the agriculture sector, although the financial details of this transaction were not disclosed. These acquisitions are part of Gallagher’s strategy to expand its presence in key markets. The recent developments reflect the company’s ongoing efforts to strengthen its position in the global insurance industry.
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