Goldman Sachs downgraded Arthur J. Gallagher (AJG) to Neutral from Buy with an unchanged price target of $313, reflecting an 4% total return opportunity. The firm continues to believe that Arthur J. Gallagher’s “high quality” middle market business can generate among the strongest net-new business growth within the insurance brokerage universe, but says its organic growth and margin estimates are no longer in excess of consensus. It sees below-Street adjusted EBITDAC margins driven by short term interest rate pressure on fiduciary investment income and slower growth in the company’s premium financing business.
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Read More on AJG:
- Arthur J. Gallagher acquires THB Chile
- Arthur J. Gallagher price target raised to $308 from $300 at Barclays
- Arthur J. Gallagher price target raised to $325 from $312 at BMO Capital
- Arthur J. Gallagher acquires Peabody Insurance Agency, terms not disclosed
- Arthur J. Gallagher acquires Scout Benefits Group, terms not disclosed
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
