Gallagher Earnings: Growth Ticks Up a Bit

Gallagher saw its underlying growth pick up a bit in the fourth quarter, mirroring the improving trend we saw from one of its larger peers. However, growth was not meaningfully out of line with our long-term expectations, and we see nothing to alter our long-term view. 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 and its insurance brokerage peers have enjoyed recently.