William Blair analyst Adam Klauber has maintained their bullish stance on AJG stock, giving a Buy rating today.
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Adam Klauber has given his Buy rating due to a combination of factors including Arthur J. Gallagher & Co.’s strong long-term growth prospects despite some short-term fluctuations. The company’s third-quarter cash EPS fell short of expectations, mainly due to timing issues with AssuredPartners deals, which are expected to correct by 2026. However, the underlying business showed resilience with U.S. retail organic growth improving sequentially.
Looking beyond the immediate noise, Klauber maintains a positive outlook for 2026, driven by anticipated organic growth of around 5%, which surpasses peers. This growth, coupled with stable margins and contributions from AssuredPartners, is expected to drive significant EPS growth. The stock’s valuation at 20 times the 2026 P/E is seen as justified given its robust growth strategy and effective cash deployment in mergers and acquisitions, supporting the Buy recommendation.
In another report released today, Goldman Sachs also maintained a Buy rating on the stock with a $315.00 price target.
Based on the recent corporate insider activity of 93 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AJG in relation to earlier this year.