
AJG Stock Forecast & Price Target
AJG Analyst Ratings
Bulls say
Arthur J. Gallagher, a prominent insurance brokerage firm, is projected to achieve expansion in its underlying brokerage adjusted EBITDAC margins by 50-70bps in the fourth quarter of FY25, indicating strong operational efficiency and profitability enhancements. The company's consistent organic growth, characterized by an 8% increase in casualty lines and sustained growth across various segments, positions it favorably within the competitive landscape, particularly in comparison to peers like AON. Additionally, Gallagher's focus on serving middle-market companies and its significant international revenue streams further contribute to a robust outlook for financial performance and market resilience.
Bears say
Arthur J. Gallagher reported earnings per share (EPS) of $2.32, which fell short of both the consensus and prior-year estimates of $2.47, indicating difficulties in achieving revenue growth and maintaining margins within the brokerage segment. The company's brokerage organic growth for the quarter was only 4.5%, below the anticipated figures of 5.1%, significantly down from the 6.1% observed in the previous year, reflecting broader economic weakness and declining insurable risks. Additionally, the dilutive effect of the AssuredPartners acquisition and the presence of non-core items further contributed to the slowdown in organic growth, suggesting ongoing challenges in the firm's operational performance.
This aggregate rating is based on analysts' research of Arthur J. Gallagher & Co. and is not a guaranteed prediction by Public.com or investment advice.
AJG Analyst Forecast & Price Prediction
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