BRO Stock Forecast & Price Target

Brown & Brown Inc. is anticipated to benefit from favorable pricing trends in the casualty and commercial auto segments, with increases ranging from 5% to 10% for primary risks, which positions the company for sustained revenue growth. The company's strong reliance on its home state of Florida, which constitutes over 20% of its revenues, suggests an advantageous outlook due to expected increases in coastal property rates and heightened construction activity. Furthermore, management's revised full-year 2025 EPS estimate indicates a positive trajectory, with an anticipated growth in EBITDA margins despite some challenges in the Specialty Distribution segment, reflecting a resilient economic environment and stable market conditions.

Brown & Brown Inc. faces significant headwinds due to a potential broader economic slowdown that could suppress top-line growth and negatively impact earnings. The company is projected to experience a dip in organic revenue growth, with a notable decline in the Specialty Distribution segment anticipated, exacerbated by a loss of non-recurring claims revenue and pressures in wind and quake programs. Additionally, ongoing economic challenges, such as prolonged recovery or inflation, could lead to a reduction in insurance coverage purchases by clients, further affecting Brown & Brown's overall growth trajectory.