Brown & Brown's (BRO) 2026 revenue growth will be driven mainly by acquisitions, particularly the Accession deal, with organic growth remaining modest, RBC Capital Markets said in a Tuesday note.
A sharp slowdown is forecast in 2027 as M&A tailwinds fade amid challenging market conditions, RBC said.
The brokerage said a slowing P&C market, tough comparisons, and integration efforts may weigh on growth and investor interest, though it highlighted Brown & Brown's strong margins and cash generation.
RBC said that while the stock could benefit from a broader sector recovery in 2026, it expects shares to perform largely in line with peers due to limited near-term catalysts.
The firm has resumed coverage of the company with a sector perform rating and a $76 price target.
Shares of the company were up 1% in Tuesday trading.
Price: 69.96, Change: +0.77, Percent Change: +1.12