Truist analyst Mark Hughes downgraded Arthur J. Gallagher to Hold from Buy with a price target of $255, down from $280. Recent industry data points increase the potential for a sharper downshift in the property and casualty cycle, which would have a knock-on effect on organic growth and valuation for Arthur J. Gallagher, which is more at risk because of its premium multiple, the analyst tells investors in a research note. The firm reduced its organic growth assumption by 100 basis points for this year and next and slightly pulled back its margin forecast.
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