Citigroup Sees a Return Opportunity in Insurance Brokers, Upgrades Arthur J. Gallagher (AJG)

Arthur J. Gallagher & Co. (NYSE:AJG) is included among the 10 Best Long Term Low Risk Stocks to Buy According to Hedge Funds On May 7, Citigroup upgraded Arthur J. Gallagher & Co. (NYSE:AJG) to Buy from Neutral and set a $250 price target, down from $280. The firm r

Arthur J.

Gallagher & Co. (NYSE:AJG) is included among the 10 Best Long Term Low Risk Stocks to Buy According to Hedge Funds

On May 7, Citigroup upgraded Arthur J. Gallagher & Co. (NYSE:AJG) to Buy from Neutral and set a $250 price target, down from $280. The firm raised ratings on four insurance broker names, pointing to valuation as the key reason.

The analyst said cyclical growth pressures are expected to ease over the next few quarters, creating a “systemic return opportunity in the sector.” During the Q1 2026 earnings call, Chairman and CEO J. Patrick Gallagher Jr. said the company’s combined Brokerage and Risk Management segments delivered 28% revenue growth in the first quarter. He noted that organic growth reached 5%, while acquisitions added 23%, helped largely by strong results from AssuredPartners.Gallagher said Brokerage revenues rose 30%, with 5% tied to organic growth.

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