BRP - BRP Group loses bull rating at William Blair on 'lack of progress' in key metrics

• BRP Group ( NASDAQ: BRP ) stock slipped 1.8% in Friday premarket trading after William Blair analyst Adam Klauber downgraded shares of the insurance broker to Market Perform from Outperform, as key operating metrics have shown little progress.
• Specifically, the company's recent results signal "little near-term margin improvement, below-average cash flow conversion, and increasing demands on cash," Klauber wrote in a note.
• Even so, he thinks BRP's ( BRP ) "peer leading organic growth" showcases its long-term potential.
• The analyst ended up lowering his 2023 adjusted EPS estimate to $1.11 from $1.15, compared with the average analyst estimate of $1.22 (8 estimates).
• The Market Perform rating aligns with the Quant system rating of Hold and disagrees with the average Wall Street analyst rating of Buy.
• BRP's ( BRP ) fourth-quarter earnings and revenue, posted at the end of February, exceeded Wall Street expectations.

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