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Investing.com - Cantor Fitzgerald has reiterated its Overweight rating and $440.00 price target on Aon Corp (NYSE:AON), a $78.79 billion market cap insurance broker currently trading near InvestingPro’s Fair Value estimate, while lowering its quarterly earnings estimates.
The research firm reduced its third-quarter 2025 operating EPS estimate from $3.26 to $3.04, citing expectations for less margin expansion and lower investment income. Despite strong revenue growth of 18.32% over the last twelve months, Cantor Fitzgerald trimmed its 2026 operating EPS forecast from $18.70 to $18.46 due to lower projected investment income.
Cantor Fitzgerald anticipates Aon’s organic growth will moderately decelerate to +5% in the third quarter, following what it described as an "uncharacteristically strong" +6% growth in the second quarter of 2025 compared to other brokers.
Key topics expected for Aon’s upcoming earnings call include the organic impact of new hires and recent investments, as well as potential organic growth from any rebound in capital markets.
The research firm noted that Aon shares currently trade at a 5% discount to their historical valuation multiple, which it considers "good value" for a company where it sees "limited downside to organic growth levels."
In other recent news, Aon plc has announced a significant transaction involving the sale of the majority of NFP’s wealth business to Madison Dearborn Partners for an estimated $2.7 billion. The deal, which includes Wealthspire Advisors, Fiducient Advisors, Newport Private Wealth, and related platforms, is expected to close in late Q4 2025. After taxes, Aon anticipates receiving approximately $2.2 billion in cash proceeds from this sale. In terms of analyst ratings, Morgan Stanley upgraded Aon’s stock to Overweight, raising its price target to $430.00, citing confidence in Aon’s strategic investments expected to enhance organic growth by the second half of 2025. Meanwhile, TD Cowen adjusted its price target for Aon to $419.00 but maintained a Buy rating, basing its valuation on a sum-of-the-parts analysis of 2026 estimated adjusted earnings. Keefe, Bruyette & Woods also reiterated its Outperform rating with a $428.00 price target, reflecting a multiple of 22.0x the firm’s 2026 estimated operating earnings per share. These developments come amidst a backdrop of strategic shifts and analyst optimism for Aon’s future performance.
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