Raymond James Cuts Brown & Brown Target to $82 as Management Forecasts 23% Growth
Raymond James lowered Brown & Brown’s 2026 price target by $8 to $82 while retaining an Outperform rating, citing a 22% year-to-date decline in insurance brokers and AI displacement concerns. Management forecasts 23% revenue growth and 10–15% EPS growth in fiscal 2026, underpinning a 40% upside to $110.
1. Raymond James Price Target Reduction
On February 17, Raymond James lowered Brown & Brown’s 2026 price target from $90 to $82 while affirming its Outperform rating. The analyst noted a 22% year-to-date decline in insurance brokers and technology equities driven by investor concerns over AI displacement, but highlighted stable credit spreads and management guidance.
2. Management Growth Outlook
Company forecasts indicate approximately 23% revenue growth and 10–15% EPS growth in fiscal 2026, supporting management’s view that shares are undervalued. A target price of $110 implies roughly 40% upside from current levels, backed by a high-margin, recurring revenue model and low capital expenditures.
3. BBDS Acquisition Expansion
Brown & Brown Dealer Services acquired the assets of American Adventure Insurance to enhance its specialized finance and insurance solutions for dealerships. The acquisition integrates American Adventure’s team into BBDS, expanding product offerings in the F&I insurance market.