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Investing.com - Raymond James has lowered its price target on Brown & Brown (NYSE:BRO) to $90.00 from $120.00 while maintaining an Outperform rating on the insurance brokerage stock.
The price target reduction comes as Brown & Brown shares have fallen 35% below their 52-week high reached in April, according to Raymond James.
The firm notes that the stock is now trading near trough valuations on a next-twelve-months (NTM) PEG ratio of 1.4x compared to its 20-year average of 1.9x and a trough of 1.1x.
On a NTM PE basis, the stock trades at 17x versus its 20-year average of 21x and a trough of 13x, though Raymond James acknowledges the stock is less compelling on a NTM free cash flow yield basis at 6.3%.
The firm believes that at current trading levels, Brown & Brown’s board may reconsider its capital allocation strategy, potentially shifting from debt reduction plans toward more aggressive share repurchase activity.
In other recent news, Brown & Brown Inc . reported its third-quarter 2025 earnings, exceeding analysts’ expectations. The company achieved an adjusted earnings per share (EPS) of $1.05, surpassing the projected $0.94. Additionally, Brown & Brown’s revenue reached $1.6 billion, which was higher than the anticipated $1.55 billion. These results highlight the company’s strong financial performance in the recent quarter. Despite the positive earnings report, the stock experienced a slight dip in premarket trading. Analysts had projected lower earnings and revenue figures, making the company’s performance noteworthy. These developments are part of the recent updates surrounding Brown & Brown.
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