Analyst Ratings January 27, 2026

Mizuho Lowers Brown & Brown Price Target to $84, Cites Near-Term Revenue Pressures

Analyst trims EPS forecasts and points to pricing, personnel shifts and flood claims as headwinds to 2026 growth and margins

By Leila Farooq BRO
Mizuho Lowers Brown & Brown Price Target to $84, Cites Near-Term Revenue Pressures
BRO

Mizuho has reduced its price target on Brown & Brown to $84 from $90 and kept a Neutral rating as it trims 2026-27 EPS estimates. The firm pointed to a mix of property-and-casualty pricing headwinds, personnel-related market share loss, and weaker flood claim revenues as contributors to slower near-term revenue growth and margin pressure. Separately, Brown & Brown posted mixed Q4 2025 results and Truist revised its price target lower while keeping a Buy rating.

Key Points

  • Mizuho cut Brown & Brown's price target to $84 from $90 and kept a Neutral rating, lowering 2026 and 2027 EPS forecasts to $4.50 and $5.00.
  • Near-term headwinds flagged include P&C pricing pressures in 2026, a 50-basis-point drag from teams lost to a competitor in litigation, and reduced flood-claim revenue in H1 2026 - all factors affecting revenue and high-margin streams.
  • Brown & Brown's Q4 2025 showed EPS above expectations at $0.93 but revenue missed at $1.6 billion; Truist lowered its price target to $100 while maintaining a Buy rating and trimmed its 2026 EPS estimate.

Mizuho has adjusted its valuation for Brown & Brown (NYSE:BRO), lowering its price target to $84.00 from $90.00 while retaining a Neutral rating on the insurance broker. The move accompanies modest reductions in Mizuho's earnings forecasts for the next two years.

The analyst trimmed its earnings-per-share projections for 2026 and 2027 by $0.10 and $0.05, respectively, bringing those estimates to $4.50 and $5.00 per share. According to Mizuho, those revised figures sit roughly 3% and 2% below consensus estimates. Data cited by the analyst shows that four analysts have cut their earnings expectations for the period, although the company itself still carries an EPS forecast of $3.89 for fiscal 2026.

Mizuho identified several near-term revenue challenges shaping its view. The firm pointed to ongoing organic headwinds from property-and-casualty insurance pricing throughout 2026, a 50-basis-point revenue drag tied to teams being recruited away by a competitor that is currently in litigation, and softer flood-claim revenue expected in the first half of 2026. Collectively, these factors are cited as reasons for the trimmed earnings outlook.

The broker's adjusted EBITDAC margins could also face pressure in 2026, Mizuho warned. That pressure is tied to the mix of revenue challenges hitting higher-margin streams, expectations of a less favorable hurricane season in 2027, and the integration of acquisitions that carry lower margins than Brown & Brown’s core business. Mizuho nevertheless projects consolidated organic growth of 3.4% in 2026 and 4.1% in 2027 for the company.

Mizuho described the new $84 price target as a reflection of a valuation roll-forward and group multiple compression rather than a change in its long-term thesis. The analyst's adjustments are focused on near-term earnings dynamics and margin sensitivity to revenue mix and weather-related outcomes.


Brown & Brown's most recent reported quarter produced mixed results. For the fourth quarter of 2025 the company reported earnings per share of $0.93, beating the $0.91 estimate, while revenue of $1.6 billion missed the $1.65 billion forecast. Those results have prompted other brokerage updates.

Truist Securities lowered its price target on Brown & Brown from $105.00 to $100.00 but maintained a Buy rating. Truist trimmed its 2026 EPS estimate to $4.55 from $4.75, attributing the revision to expected weaker organic growth and modest top-line disruption stemming from personnel losses at Howden. Both the Mizuho and Truist moves underline a period of reassessment as analysts reprice expectations around near-term growth and margin drivers.

Investors and market participants will be watching incoming revenue trends, claims patterns and acquisition integration closely as determinants of Brown & Brown’s near-term performance and margin trajectory.

Risks

  • Revenue sensitivity to property-and-casualty pricing trends could weigh on insurance sector top lines and margins if pricing remains unfavorable throughout 2026.
  • Personnel movements and competitive recruiting - exemplified by a competitor lifting teams now in litigation - present execution and topline risks for brokers and insurance distribution networks.
  • Weather-related variability, including a potentially less favorable hurricane season in 2027 and lower flood-claim revenue in early 2026, introduces earnings volatility for insurance firms and related financial markets.

More from Analyst Ratings

Palantir Gains After Lofty 2026 Guidance; Analysts Split on Outlook Feb 2, 2026 Freedom Capital Markets Starts Coverage of Nebius Group With Buy Rating, $108 Target Feb 2, 2026 Clear Street Starts Coverage on Caribou Biosciences with Buy Rating and $13 Target Feb 2, 2026 Goldman Keeps OLN Neutral at $22 as Olin Signals Rough Q1, Cost Cuts to Cushion Results Feb 2, 2026 Aletheia Capital Starts Coverage on Teradyne With Buy Rating, $400 Target Feb 2, 2026