Deutsche Bank Maintains Buy On Arthur J. Gallagher, Sees 13% Upside


In a research report issued today, Deutsche Bank analyst Joshua Shanker maintained a Buy rating on Arthur J. Gallagher (NYSE:AJG) with a price target of $54.00, which represents a potential upside of 13% from where the stock is currently trading.

Shanker observed, “We are revising our 4Q14 estimates down to $0.53, as guidance indicates greater depreciation and amortization than we previously contemplated. Amortization should increase about 1% per quarter for every dollar paid for an acquisition, but can vary from our estimates depending on the timing of deals and the multiple paid. Nonetheless, we see upside risk in our estimates as we could be underestimating the volume of acquisitions that Gallagher can complete in a given year. This potential for growth and margin tailwinds suggests material upside in Gallagher.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Joshua Shanker has a total average return of 8.8% and a 57.4% success rate. Shanker has an 7.3% average return when recommending AJG, and is ranked #657 out of 3355 analysts.

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