Arthur J. Gallagher To Benefit From AssuredPartners Acquisition In 2025, Says Bullish Analyst

by Priya Nigam Benzinga Staff Writer

Zinger Key Points

Arthur J. Gallagher’s stock is currently trading closer to its peers, despite higher organic growth.
The AssuredPartners acquisition would begin being accretive to earnings from 2025.
Next: Access Our New, Shockingly Simple 'Alert System'

While shares of Arthur J. Gallagher & Co. AJG have declined following the purchase of AssuredPartners, this acquisition is likely to be accretive to earnings from 2025, according to Piper Sandler.

The Arthur J. Gallagher Analyst: Analyst Paul Newsome upgraded the rating for Arthur J. Gallagher from Neutral to Overweight, while raising the price target from $285 to $315.

The Arthur J. Gallagher Thesis: Following the pullback in the stock, it is currently trading "closer to peers than it has in recent history," Newsome said in the upgrade note.

Check out other analyst stock ratings.

The stock valuation is attractive, since Arthur J. Gallagher's stock "typically trades at a premium to peers due to higher organic growth," the analyst stated. "We estimate organic growth for AJG will be about 7.2% in 2025," he added.

AssuredPartners is "strategically good" for Arthur J. Gallagher and synergies from the acquisition are likely to be "1.4% accretive to adjusted EPS in 2025 and 8.1% accretive to adjusted EPS in 2026," Newsome further wrote.

AJG Price Action: Shares of Arthur J. Gallagher had risen by 2.18% to $285.90 at the time of publication on Wednesday.

Photo: Shutterstock

AJGArthur J. Gallagher & Co

$322.330.73%

Overview Rating:

Speculative

0100