J.P. Morgan Lowering Estimates On Brown & Brown (BRO)

J.P. Morgan Chase & Co. is lowering its estimates on Brown & Brown, Inc. BRO, but still has a Neutral rating and a $23 price target. In a note sent to clients, J.P. Morgan writes, "We are reducing our 2011 and 2012 EPS estimates by $0.05 and $0.06, respectively, to $1.13 and $1.33, reflecting a doubling of our stock based compensation expense estimates, which will not have a related tax benefit. We are making no changes to our growth estimates, though if the plan works as designed, longer-term growth may be greater than we expect. The plan should be enacted on January 1, 2011, and therefore are making no changes to our 2010 EPS estimate." Shares of BRO lost 36 cents on Friday to close at $23.44, a loss of 1.5%.