Brown & Brown Expected to Deliver Low-Single Digit Organic Revenue Growth Into 2027, RBC Says

MT Newswires Live07-29

Brown & Brown (BRO) is expected to continue delivering low-single digit organic revenue growth into 2027, with strong operating cash flow conversion and significant share buybacks, RBC Capital Markets said in a note emailed Wednesday.

Following Q2 results, RBC raised its 2026 adjusted EPS estimate to $4.66 from $4.59 and its 2027 estimate to $4.95 from $4.87, according to the note.

Brown & Brown said organic growth should improve in H2, with Retail and Specialty Distribution growth projected at 1.5% to 2.5% and 2% to 4%, respectively, driven by a business mix shift away from catastrophe property, the note added.

The brokerage models a slowdown in 2027 profit sharing commissions to $255 million from $327 million estimated in 2026, creating a headwind to overall revenue growth and the recent organic and contingent growth metric, the note said.

RBC raised its share buyback expectation to $950 million for 2026 and $700 million for 2027.

RBC kept a sector perform rating on Brown & Brown and raised its price target to $78 from $72.

Price: 75.44, Change: +1.79, Percent Change: +2.43

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