Brown & Brown (BRO) could remain under pressure in the next quarters as property pricing stays weak and casualty trends soften, but the company is still expected to do better in H2, Truist Securities said in a note Thursday.
Coastal commercial property rates appear to have reached a low point, though year-over-year pricing is likely to stay down 20% to 25% through Q2, and casualty pricing looks slightly less helpful for growth, based on recent signs from Florida surplus lines data and IVANS, Truist said.
Wall Street's organic growth view of 1.2% looks fair, though Truist said its model points to about 1.9% organic growth.
The investment firm added that Brown & Brown is likely to face a 75-basis-point drag from storm claims revenue in Q1 last year.
Truist kept its buy rating and $100 price target on the stock.
Price: 66.07, Change: +1.67, Percent Change: +2.59
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