BMO upgrades to Gallagher to 'outperform' on AI productivity benefits

Arthur J. Gallagher & Co.

24/03/2026 11:59

** BMO upgrades insurance broker Arthur J. Gallagher AJG.N to "outperform" from "market perform"

** Raises PT to $278 from $275, implying a 28% upside to stock's last close

** Brokerage says market is pricing in slight organic growth misses and not fully appreciating the AI productivity benefits over the next 12 to 24 months

** Productivity upside offsets risks associated with longer-term uncertainty as to whether business owners will seek to use AI to perform some of the consultative functions currently performed by their insurance brokers - BMO

** 15 of 24 brokerages rate the stock "buy" or higher and 9 "hold"; median PT $272.25 - data compiled by LSEG

** As of last close, AJG stock down 16.2% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)

 ((ArasuKannagi.Basil@thomsonreuters.com;))