Brown & Brown (BRO) faces limited near-term upside relative to peers amid macro uncertainties, Morgan Stanley said Tuesday in a note.
The insurance company's "valuation is a bit too hot," and the strong year-to-date stock performance makes the shares "less attractive," Morgan Stanley said.
"Longer term, we continue to believe the fundamentals will outpace peers," and "we are big believers" in the long-term growth and margin outlook, the report said.
Morgan Stanley downgraded its rating on Brown & Brown stock to equalweight from overweight and retained its price target of $128.
Brown & Brown shares rose 0.5% in recent Tuesday trading.
Price: 121.52, Change: +0.54, Percent Change: +0.45
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