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Investing.com - Jefferies raised its price target on Marsh & McLennan (NYSE:MMC) to $229.00 from $227.00 on Friday, while maintaining a Hold rating on the insurance broker’s stock.
The firm noted that Marsh & McLennan delivered an in-line quarter with metrics that remain on track to achieve guidance, despite the company expressing caution due to macroeconomic uncertainty and softening rates.
Jefferies pointed out that the company remains confident in its ability to achieve mid-single-digit organic growth and margin expansion, despite the cautious outlook.
The research firm observed that Marsh & McLennan’s consulting business experienced pressure from reduced project work, which Jefferies expects to persist somewhat in the near term.
The Risk and Insurance Services (RIS) segment largely performed in line with expectations despite pricing challenges, and Jefferies models a mostly similar performance for the second half of the year.
In other recent news, Marsh & McLennan Companies Inc. reported its second-quarter earnings for 2025, exceeding Wall Street expectations with an adjusted earnings per share (EPS) of $2.72, compared to the anticipated $2.67. The company’s revenue reached $7 billion, slightly surpassing the forecasted $6.94 billion. Marsh & McLennan also announced a 10% increase in its quarterly dividend to $0.90 and completed $300 million in share repurchases during the quarter. The company continues to focus on investments in AI and technology as part of its strategic direction. Analysts from firms like Raymond (NSE:RYMD) James have noted the company’s resilience in navigating economic uncertainties, though they remain cautious about potential global trade policy shifts. Marsh & McLennan’s underlying revenue growth was reported at 4% for the quarter, with a 14% increase in adjusted operating income. Looking ahead, the company anticipates mid-single-digit underlying revenue growth and continued margin expansion for the remainder of 2025.
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