Arthur J. Gallagher price target raised to $255 from $233 at BofA

BofA raised the firm’s price target on Arthur J. Gallagher to $255 from $233 and keeps an Underperform rating on the shares. In recent months, the insurance broker group has retraced due to potential interest rate cuts and hints of slowing organic growth, notes the analyst, who contends that “for the first time in the post-pandemic era, the group no longer seems notably expensive.” However, the firm still has concerns that further retrenchment is possible at some as organic growth retreats towards long-term averages and lower investment income weighs on margins, the analyst added.