BofA Lowers Long-Term Earnings Outlook for Brown & Brown (BRO) After Q4 Results

Core Insights - Brown & Brown, Inc. (NYSE:BRO) has been recognized as one of the 13 Best February Dividend Stocks to Buy [1] - BofA analyst Joshua Shanker has lowered the long-term earnings outlook for Brown & Brown following Q4 results, reducing the price target from $94 to $90 while maintaining a Neutral rating [2] - The company's fourth-quarter operating earnings were reported at $0.93 per share, slightly above the Street's consensus of $0.90 but below BofA's estimate of $0.96 [2] - BofA has adjusted its earnings forecasts for 2026, 2027, and 2028 down by 4.8%, 5.1%, and 5.3% respectively, citing slower expected organic growth [2] Financial Performance - Brown & Brown reported a higher adjusted profit for Q4, driven by stronger commission and fee income, although shares fell nearly 6% due to concerns over weakening organic growth [3] - Organic revenue for the quarter was $1.08 billion, a decrease from $1.11 billion in the same period last year [3] - Commissions and fees saw a significant increase of 36%, reaching $1.58 billion for the quarter, contributing to total revenue of $1.61 billion compared to $1.18 billion a year earlier [4] - Investment and other income rose to $27 million from $23 million a year earlier, while adjusted earnings increased to $0.93 per share from $0.86 a year prior [4] Company Overview - Brown & Brown, Inc. operates as an insurance broker, connecting customers with insurers across a wide range of policies, focusing on risk management and selling insurance products primarily in property, casualty, and employee benefits [5]