Gallagher Earnings: Growth Slows, but in Line With Peers

Gallagher saw its organic growth slow a bit in the third quarter, but growth was still roughly in line with what we saw at peers. We expect growth to start to slow a bit for the brokers as the tailwinds of higher insurance pricing and interest rates start to fall off, but we think the industry backdrop remains largely favorable. We will maintain our $250 fair value estimate for the narrow-moat company. We see shares as modestly overvalued, as we believe the market is overly focused on the tailwinds the company has been enjoying.