Brown & Brown Faces Tough Q4 Setup as Acquired Revenue Fades, RBC Says

MT Newswires Live10-29

Brown & Brown (BRO) revenue growth has yet to bottom, with acquired revenue normalizing and contingent commissions facing tough comparisons in Q4, RBC said in a note Wednesday.

RBC said investors may stay sidelined into year-end as macro conditions remain unfavorable. Total revenue could turn negative in 4Q26 before organic growth stabilizes, the broker said.

RBC models 1.7% Specialty Distribution organic growth in 2027, below the midpoint of the company's +1% to +3% guidance, after management cut its Q4 Specialty outlook to -2% to -4%.

The broker lowered its adjusted EPS estimates to $4.51 for 2026, $4.78 for 2027 and $5.28 for 2028 and pointed to improving Retail organic growth and a higher Accession synergy target of $175 million by 2028, which it expects to support margin expansion.

RBC kept its sector perform rating and $78 price target.

Price: 66.25, Change: -1.30, Percent Change: -1.92

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