FINWIRES · TerminalLIVE
FINWIRES

Research Alert: CFRA Maintains Hold Opinion On Shares Of Brown & Brown, Inc.

By

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month target price to $70 from $80, valuing BRO shares at 16x our '26 EPS estimate of $4.50 and at 15x our '27 EPS estimate of $4.75 (cut today by 40.20), below the shares' one-year average forward multiple of 20x and versus the peer average forward multiple of 16x. BRO reported Q1 EPS of $1.39 (versus $1.29 a year ago) that topped our $1.37 estimate and the $1.36 consensus view, though revenue growth of 35% to $1.9B was acquisition-led with $435M from deals. Organic revenues were flat Y/Y at $1.35B, lagging our 4% to 8% growth forecast, while Q1 EBIT margins contracted to 28.0% from 30.4% due to acquisition costs and doubled interest expense. We believe the shares lack a near-term catalyst given below-peer organic growth rates and margin compression that removes BRO's historical premium valuation justification. Management also characterized business conditions as "challenging," representing a shift from last quarter's "stable" assessment. We maintain our Hold rating.

Related Articles

Commodities

EMEA Natural Gas Update: Futures Slip as Iran Sends Fresh Proposal to Washington

European natural gas futures traded lower after-hours on Friday after Iranian state media reported that Tehran had sent another proposal for negotiations with the US via Pakistani diplomatic channels, a development seen as potentially paving the way for renewed transit through the Strait of Hormuz.The front-month Dutch TTF contract fell 1.211% to 45.43 euros ($53.36) per megawatt-hour, while the UK NBP contract slipped 1.533% to 111.15 British pence ($1.51) per therm.US President Donald Trump, speaking to reporters at the White House on Friday, said, "Iran wants to make a deal, but I'm not satisfied with it," CNBC reported.Market participants continue to weigh geopolitical risk against relatively stable European supply conditions and weaker demand elsewhere. In a Thursday note, S&P Global analysts said Europe has benefited from "significant demand destruction elsewhere," noting that although the war has effectively removed about 20% of global LNG supply, European imports have remained broadly steady.The note said Asia has absorbed much of the demand adjustment. It said China recorded a 19% year-on-year drop in LNG imports in March, according to government data.Benchmark LNG prices remain elevated, but off recent highs, they said. The JKM benchmark for Northeast Asia put prices at $18.309/MMBtu on April 30, up 8.3% on the day. The DES Northwest Europe LNG marker was assessed at $15.719 per MMBtu on Apr. 29, up 7.9% day-on-day.The analysts said both benchmarks remain above pre-conflict levels but have retreated from peaks seen in the early weeks of the disruption.European storage levels remain below last year's levels. Gas Infrastructure Europe reported inventories at 32.49% as of Friday, compared with 39.22% a year earlier.CERA analysts project EU storage could reach about 80% by the end of October under a base-case scenario, assuming a resumption of steady Hormuz transit by Jun. 1.EU LNG imports rose slightly year over year in March, supported by cargoes already en route when the conflict began in late February, according to CERA data. However, that buffer has since faded, with April imports down roughly 6.9% from 2025 levels.Looking ahead, Severe Weather Europe said Friday it is monitoring the potential development of a "super El Nino" pattern. One scenario that could develop would be an increase in the risk of dry conditions and drought across Central Europe this summer.

Australia

Nebius to Acquire Eigen AI in $643 Million Cash-And-Stock Deal

Nebius Group (NBIS) said Friday it has agreed to acquire inference and model optimization firm, Eigen AI, in a cash-and-stock deal valued at about $643 million.The acquisition will strengthen Nebius Token Factory as a frontier managed inference platform for production AI, the company said, adding that the deal also accelerates its expansion in the US.The transaction is expected to close in the coming weeks, it said.Nebius shares were up over 10% in afternoon trading.Price: $152.93, Change: $+14.70, Percent Change: +10.63%

$NBIS
Australia

Paychex Raises Quarterly Dividend to $1.19 a Share From $1.08, Payable May 29 to Shareholders of Record as of May 13

Price: $92.59, Change: $-0.04, Percent Change: -0.04%

$PAYX