Brown & Brown Under Investigation, Stock Plummets
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Should l Buy BRO?
Source: Globenewswire
- Financial Performance Decline: Brown & Brown reported a 2.8% decrease in organic revenue for Q4 2025, primarily due to a drop in flood claims processing revenue, which directly impacts the company's financial health and investor confidence.
- Employee Attrition Impact: Company leadership disclosed that 275 former employees joined a competitor, taking with them customers representing $23 million in annual revenue, posing a significant threat to the company's market share and revenue stability.
- Stock Price Reaction: On January 27, 2026, Brown & Brown's stock price fell by $5.50, or 6.91%, closing at $74.12 per share, reflecting market concerns regarding the company's future outlook and operational challenges.
- Legal Investigation Initiated: Pomerantz LLP is investigating Brown & Brown and its executives for potential securities fraud or other unlawful business practices, which could further impact the company's reputation and shareholder confidence.
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Analyst Views on BRO
Wall Street analysts forecast BRO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BRO is 91.45 USD with a low forecast of 80.00 USD and a high forecast of 114.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
2 Buy
9 Hold
1 Sell
Hold
Current: 72.670
Low
80.00
Averages
91.45
High
114.00
Current: 72.670
Low
80.00
Averages
91.45
High
114.00
About BRO
Brown & Brown, Inc. is an insurance brokerage company engaged in delivering risk management solutions. It markets and sells insurance products and services, primarily in the property, casualty and employee benefits areas. Its segments include the Retail segment provides a range of insurance products and services to commercial, public and quasi-public, professional and individual insured customers, and non-insurance services and products through its automobile dealer services F&I businesses; The Programs segment specializes in the development, underwriting and management of insurance program business, often designed for niche, underserved markets, and distributes these coverages to retail agencies, as well as affinity groups, wholesale entities and sold direct to consumers; and The Wholesale Brokerage segment markets and sells excess and surplus commercial and personal lines insurance, primarily through independent agents and brokers, as well as Brown & Brown retail agents.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Brown & Brown Under Investigation, Stock Plummets
- Financial Performance Decline: Brown & Brown reported a 2.8% decrease in organic revenue for Q4 2025, primarily due to a drop in flood claims processing revenue, which directly impacts the company's financial health and investor confidence.
- Employee Attrition Impact: Company leadership disclosed that 275 former employees joined a competitor, taking with them customers representing $23 million in annual revenue, posing a significant threat to the company's market share and revenue stability.
- Stock Price Reaction: On January 27, 2026, Brown & Brown's stock price fell by $5.50, or 6.91%, closing at $74.12 per share, reflecting market concerns regarding the company's future outlook and operational challenges.
- Legal Investigation Initiated: Pomerantz LLP is investigating Brown & Brown and its executives for potential securities fraud or other unlawful business practices, which could further impact the company's reputation and shareholder confidence.
See More
Brown & Brown Stock Rating Downgraded
- Rating Maintenance and Price Target Cut: Michael Zaremski from BMO Capital and Yaron Kinar from Mizuho Securities both maintained a Hold rating on Brown & Brown (NYSE:BRO), lowering their price targets from $88 to $81 and from $90 to $84 respectively, indicating a cautious market outlook.
- Valuation Analysis: Zaremski noted that while P/E ratios are at discounted levels, the enterprise value to EBITDA and free cash flow yield remain expensive compared to the S&P 500, suggesting limited attractiveness for the stock.
- Earnings Forecast Adjustment: BMO Capital reduced its EBITDA estimates for Brown & Brown by approximately 3% and projected a 2.4% organic growth in 2026, reflecting a cautious stance on the company's future growth prospects.
- Lack of Positive Catalysts: Analysts believe there are no positive catalysts to drive the stock price higher in the near term, hence the Hold rating and reduced price target, indicating a pessimistic outlook for the stock's short-term performance.
See More
BROWN & BROWN INC: UBS Lowers Price Target to $81 from $90
- UBS Target Price Adjustment: UBS has cut its target price for Brown & Brown Inc. from $90 to $81.
- Market Impact: This adjustment reflects UBS's revised outlook on the company's performance and market conditions.
See More
Wall Street Analysts Adjust Ratings
- Analyst Rating Updates: Top Wall Street analysts have adjusted their ratings on several companies, reflecting a shift in market sentiment that could influence investor decisions and market trends.
- Overview of Changes: The rating changes include upgrades, downgrades, and new initiations, providing investors with a comprehensive view of market analysis to better seize investment opportunities.
- Investor Attention: The changes in analyst ratings may draw investor interest towards FTNT stock, particularly in the current market environment where investors need to closely monitor these shifts for informed decision-making.
- Market Impact Assessment: Analyst rating adjustments not only affect the performance of individual stocks but can also influence overall market sentiment, prompting investors to consider these factors to optimize their investment portfolios.
See More
Wall Street Analysts Adjust META Stock Outlook
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on META stock, reflecting varying market perspectives on the company's future performance, which could influence investor decisions.
- Increased Market Attention: As analysts focus more on META, investors may reassess their portfolios, particularly against the backdrop of volatility in tech stocks.
- Rating Page Update: Comprehensive information on analyst rating changes can be found on our analyst ratings page, offering a complete view of META and other stocks to aid investors in making informed decisions.
- Lack of Investment Advice: While rating changes are provided, Benzinga does not offer specific investment advice, leaving investors to evaluate risks and rewards independently.
See More
Citi Downgrades Brown & Brown to Neutral Amid Modest Growth Outlook
- Rating Downgrade: Citi has downgraded Brown & Brown (BRO) from Buy to Neutral, citing that the expected growth rebound in 2026 appears more modest than anticipated, indicating a decline in market confidence towards the company.
- Growth Expectations: Analysts noted that while the 2025 growth weakness is viewed as an industry issue, Brown & Brown's retail growth rate of only 2.0-3.0% aligns with the error rate of implied industry growth rates, highlighting ongoing challenges for the company.
- Market Competition: The analyst emphasized the absence of a convincing catalyst to improve the 12-month risk-reward profile, with persistent talent competition risks potentially impacting the company's long-term performance.
- Rating Consistency: Citi's Neutral rating aligns with the SA Quant rating and the average Wall Street rating, both at Hold, contrasting with the average SA Analyst rating of Buy, indicating a divergence in market perspectives on the stock.
See More
Brown & Brown Under Investigation, Stock Plummets
- Financial Performance Decline: Brown & Brown reported a 2.8% decrease in organic revenue for Q4 2025, primarily due to a drop in flood claims processing revenue, which directly impacts the company's financial health and investor confidence.
- Employee Attrition Impact: Company leadership disclosed that 275 former employees joined a competitor, taking with them customers representing $23 million in annual revenue, posing a significant threat to the company's market share and revenue stability.
- Stock Price Reaction: On January 27, 2026, Brown & Brown's stock price fell by $5.50, or 6.91%, closing at $74.12 per share, reflecting market concerns regarding the company's future outlook and operational challenges.
- Legal Investigation Initiated: Pomerantz LLP is investigating Brown & Brown and its executives for potential securities fraud or other unlawful business practices, which could further impact the company's reputation and shareholder confidence.
See More
Brown & Brown Stock Rating Downgraded
- Rating Maintenance and Price Target Cut: Michael Zaremski from BMO Capital and Yaron Kinar from Mizuho Securities both maintained a Hold rating on Brown & Brown (NYSE:BRO), lowering their price targets from $88 to $81 and from $90 to $84 respectively, indicating a cautious market outlook.
- Valuation Analysis: Zaremski noted that while P/E ratios are at discounted levels, the enterprise value to EBITDA and free cash flow yield remain expensive compared to the S&P 500, suggesting limited attractiveness for the stock.
- Earnings Forecast Adjustment: BMO Capital reduced its EBITDA estimates for Brown & Brown by approximately 3% and projected a 2.4% organic growth in 2026, reflecting a cautious stance on the company's future growth prospects.
- Lack of Positive Catalysts: Analysts believe there are no positive catalysts to drive the stock price higher in the near term, hence the Hold rating and reduced price target, indicating a pessimistic outlook for the stock's short-term performance.
See More
BROWN & BROWN INC: UBS Lowers Price Target to $81 from $90
- UBS Target Price Adjustment: UBS has cut its target price for Brown & Brown Inc. from $90 to $81.
- Market Impact: This adjustment reflects UBS's revised outlook on the company's performance and market conditions.
See More
Wall Street Analysts Adjust Ratings
- Analyst Rating Updates: Top Wall Street analysts have adjusted their ratings on several companies, reflecting a shift in market sentiment that could influence investor decisions and market trends.
- Overview of Changes: The rating changes include upgrades, downgrades, and new initiations, providing investors with a comprehensive view of market analysis to better seize investment opportunities.
- Investor Attention: The changes in analyst ratings may draw investor interest towards FTNT stock, particularly in the current market environment where investors need to closely monitor these shifts for informed decision-making.
- Market Impact Assessment: Analyst rating adjustments not only affect the performance of individual stocks but can also influence overall market sentiment, prompting investors to consider these factors to optimize their investment portfolios.
See More
Wall Street Analysts Adjust META Stock Outlook
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on META stock, reflecting varying market perspectives on the company's future performance, which could influence investor decisions.
- Increased Market Attention: As analysts focus more on META, investors may reassess their portfolios, particularly against the backdrop of volatility in tech stocks.
- Rating Page Update: Comprehensive information on analyst rating changes can be found on our analyst ratings page, offering a complete view of META and other stocks to aid investors in making informed decisions.
- Lack of Investment Advice: While rating changes are provided, Benzinga does not offer specific investment advice, leaving investors to evaluate risks and rewards independently.
See More
Citi Downgrades Brown & Brown to Neutral Amid Modest Growth Outlook
- Rating Downgrade: Citi has downgraded Brown & Brown (BRO) from Buy to Neutral, citing that the expected growth rebound in 2026 appears more modest than anticipated, indicating a decline in market confidence towards the company.
- Growth Expectations: Analysts noted that while the 2025 growth weakness is viewed as an industry issue, Brown & Brown's retail growth rate of only 2.0-3.0% aligns with the error rate of implied industry growth rates, highlighting ongoing challenges for the company.
- Market Competition: The analyst emphasized the absence of a convincing catalyst to improve the 12-month risk-reward profile, with persistent talent competition risks potentially impacting the company's long-term performance.
- Rating Consistency: Citi's Neutral rating aligns with the SA Quant rating and the average Wall Street rating, both at Hold, contrasting with the average SA Analyst rating of Buy, indicating a divergence in market perspectives on the stock.
See More
