Wells Fargo Remains a Buy on Arthur J Gallagher & Co (AJG)

By Jason Carr

In a report released yesterday, Elyse Greenspan from Wells Fargo maintained a Buy rating on Arthur J Gallagher & Co (AJGResearch Report), with a price target of $85. The company’s shares closed yesterday at $74.71.

Greenspan commented:

“We reaffirm our Outperform rating. $ 2018A 2019E 2020E EPS Curr. Prior Curr. Prior Q1 (Mar.) 1.52 1.65 1.71 1.82 Q2 (June) 0.62 0.68 0.74 0.81 Q3 (Sep.) 0.78 0.91 0.90 1.02 Q4 (Dec.) 0.53 0.64 NC 0.75 FY 3.45 3.87 3.97 4.40 4.42 CY 3.45 3.87 4.40 FY P/EPS 21.7x 19.3x 17.0x Rev.(MM) 5,177 5,858 6,522 NA = Not Available, NC = No Change, NE = No Estimate, NM = Not Meaningful V = Volatile Ticker AJG Outstanding: (MM) 183.8 Market Cap.: (MM) $13,734.2 S&P 500: 2,704.10 Avg. $1.64/2.2% LT Debt: (MM) $3,091.4 LT 14.2% 3-5 Yr. Est. Growth Rate: 10.0% CY 2019 Est.”

According to TipRanks.com, Greenspan is a 3-star analyst with an average return of 1.6% and a 54.0% success rate. Greenspan covers the Financial sector, focusing on stocks such as American International Group, Marsh & Mclennan Companies, and AXA Equitable Holdings Inc.

Arthur J Gallagher & Co has an analyst consensus of Moderate Buy, with a price target consensus of $82.50.

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Arthur J Gallagher & Co’s market cap is currently $13.72B and has a P/E ratio of 22.30. The company has a Price to Book ratio of 3.02.

Based on the recent corporate insider activity of 45 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of AJG in relation to earlier this year.

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Arthur J. Gallagher & Co. engages in the provision of insurance brokerage, consulting, and third party claims settlement and administration services to both domestic and international entities. It operates through the following segments: Brokerage, Risk Management, and Corporate.