Increased dividend to $0.0775 from $0.75 for shareholders of record on 11/4.

Buy -- Price 20 on Oct. 21
by Signal Hill

We believe BRO should trade in a range of 18 to 19 times our 4Q09E EPS of $1.30 ... or a fair-value range of 23 to 24 a share. BRO, in our opinion, has one of the best-managed insurance brokerage platforms. Its focus on smaller to midsize accounts eliminates need for expensive specialists. BRO tends to have the best margins among publicly traded brokers. Market cap: $2.8 billion.

7.1%

Lots of Acquisitions/Undervalued

Brown & Brown (BRO) was downgraded from Outperform to Market Perform, Wachovia said. Estimates also cut because of margins pressures. Company also has exposure to weakening Florida market.

35

17%

employed

Hey Bro!