Arthur J Gallagher & Co Exceeds Q2 Expectations, Analysts Bullish on Stock

By Don Francis, Editor
July 30, 2023 6:24 AM UTC
Arthur J Gallagher & Co Exceeds Q2 Expectations, Analysts Bullish on Stock

Wells Fargo's Elyse Greenspan raised their price target on Arthur J Gallagher & Co (NYSE: AJG) by 1.72% from $233.00 to $237.00 on 2023/07/28. The analyst maintained their Strong Buy rating on the stock.

According to Greenspan, Arthur J. Gallagher's second-quarter 2023 results exceeded market expectations. The company's earnings per share (EPS) beat the consensus, reflecting a strong performance. Greenspan arrived at this assessment after thoroughly evaluating the company's Q2 report and participating in its earnings call held on July 27, 2023.

Furthermore, Wells Fargo's organic growth forecasts for Arthur J. Gallagher's Brokerage and Risk Management segment were also surpassed, indicating positive momentum for the company. In addition, their firm's projections for organic growth and margin in Gallagher's Brokerage business were higher than anticipated.

Citigroup's Michael Ward also provided an update on AJG on July 28, 2023. Ward raised their price target by 1.21% and maintained their Strong Buy rating on the stock. This reaffirms the positive sentiment surrounding Arthur J. Gallagher.

At present, 71.43% of top-rated analysts recommend AJG as a Strong Buy, while 14.29% consider it a Buy. Another 14.29% see the stock as a Hold, and no analysts suggest selling the stock.

The consensus forecast among analysts is that Arthur J. Gallagher will deliver earnings per share (EPS) of $8.63 in the upcoming year. If this prediction holds true, AJG's next yearly EPS will increase by an impressive 57.19% in a year-over-year comparison.

Investors who have held AJG since its last quarterly report have seen a significant increase in the stock price, which is up 165.27%. Additionally, on a year-over-year basis, AJG has gained 22.81%. During the same period, Arthur J. Gallagher has outperformed the S&P 500, which has recorded a gain of 12.52%.

It is worth noting that Elyse Greenspan, the Wells Fargo analyst who raised the price target on AJG, is ranked in the top 4% of Wall Street analysts by WallStreetZen. With an average return of 8.98% and a win rate of 61.41%, Greenspan specializes in the Financial Services sector.

Arthur J. Gallagher & Co. (AJG) is a global insurance brokerage and risk management services firm based in Rolling Meadows, Illinois. The company focuses on placing specialized and hard-to-place insurance, acting as a brokerage wholesaler, managing general agent, and general underwriter. AJG also provides services such as contract claim settlement, loss control consulting, and insurance property appraisal and administration. Established in 1927, AJG has a long history in the insurance industry.

Many investors find analysts' recommendations and price targets to be useful data points. However, different investors have different priorities and risk profiles. All investors should conduct their own investment due diligence before buying a stock.

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