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Brown & Brown, Inc. (BRO) stock soared to an all-time high this week, reaching a pinnacle of $125.03. This peak represents a significant milestone for the insurance brokerage firm, reflecting a robust performance amid a challenging economic landscape. Over the past year, Brown & Brown has witnessed an impressive 45.62% increase in its stock value, underscoring the company’s resilience and the investors’ growing confidence in its business model and growth strategy. The company’s ascent to this record level marks a noteworthy achievement and highlights its potential for continued success in the industry, with analysts forecasting continued profitability and 11% revenue growth for FY2025.
In other recent news, Brown & Brown Inc (NYSE:BRO). reported fourth-quarter 2024 earnings that exceeded market expectations, with earnings per share (EPS) of $0.86, surpassing the forecasted $0.77. The company’s revenue also outperformed predictions, reaching $1.2 billion against a forecast of $1.12 billion. Despite these positive results, Morgan Stanley (NYSE:MS) downgraded Brown & Brown’s stock from Overweight to Equal-weight, citing the stock’s significant year-to-date appreciation and premium valuation relative to its industry peers. Meanwhile, Goldman Sachs adjusted its price target for Brown & Brown, raising it slightly from $117.00 to $118.00 while maintaining a Buy rating on the company’s shares.
Brown & Brown’s strong performance in the fourth quarter was highlighted by a 15.4% year-over-year increase in total revenues and an expanded adjusted EBITDAC margin of 32.9%. The company completed 10 acquisitions, including the significant purchase of Quintess in The Netherlands, which bolstered its international presence. Looking ahead, Brown & Brown remains cautious about potential impacts from California wildfires, which could affect its retail segment in the first quarter of 2025. The company anticipates a flat adjusted EBITDA margin for 2025 and an effective tax rate of 24-25%. Despite these challenges, management expressed satisfaction with the company’s 2024 performance and optimism for the coming year.
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