RBC Capital provided a review of Arthur J. Gallagher & Co. (NYSE:AJG) quarterly Investor Day, which offered up some data points indicating that organic growth trends have remained favorable to start the year.
Both P&C pricing and the economy aren’t showing signs of fading in any meaningful way and remain tailwinds. Gallagher’s M&A appetite remains high as evidenced by recent deal activity. Likewise, the company sounded upbeat about 2023 organic growth prospects across both segments.
The analysts said they remain constructive on the company’s shares at current levels and revised their 2023 EPS estimate to $8.70 from $8.75 to reflect higher interest expense from a recent debt offering. Their 2024 EPS forecast of $9.70 is unchanged.