NEW YORK (CBS.MW) -- Arthur J. Gallagher (ajg) shares fell Tuesday after JP Morgan cut the insurance broker's stock to "underweight" vs. "neutral," citing a weak property/casualty market and the stock's high price. "While we admire the Gallagher organization, we believe that its current premium valuation remains unwarranted," analyst David Sheusi told clients in a note. "We believe investors are underestimating the impact of a fiercely competitive risk management business, softening rates, and economics related to a higher tax rate." Sheusi said he's sticking with earnings estimates for 2004 and 2005, as the company's favorable commission and fee mix will enable it sustain its operating performance. Shares were last quoted down 75 cents at $30.52.
Arthur J. Gallagher shares slip on JP Morgan downgrade
Ciara Linnane
Published on June 29, 2004
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