Stryker shares tumble despite strong Q2 results and raised guidance
Investing.com - Jefferies upgraded Aon Corp (NYSE:AON) from Hold to Buy on Wednesday, while raising its price target to $426.00 from $400.00, representing 21% potential upside. The insurance broker, currently valued at $76.3 billion, has demonstrated strong financial health according to InvestingPro metrics, with impressive revenue growth of 18.3% over the last twelve months.
The upgrade comes as Jefferies sees Aon positioned for accelerating margin expansion driven by continued favorable organic growth, productivity gains, and cost savings.
Jefferies views Aon as best positioned to benefit from an M&A rebound and anticipates longer-term advantages from the company’s middle market expansion efforts.
The firm projects Aon will deliver an earnings per share compound annual growth rate (CAGR) of 12% over the next three years, which it notes is stronger than prior periods and better than competitor Marsh & McLennan Companies.
The new $426 price target is based on a 16.5x enterprise value to EBITDA multiple, reflecting Jefferies’ confidence in Aon’s growth trajectory and operational improvements.
In other recent news, Aon plc reported several significant developments. Aon introduced the Aon Broker Copilot, a new platform leveraging artificial intelligence to enhance the commercial insurance placement process. The company also held its 2025 Annual General Meeting of Shareholders, where all proposals, including director elections and incentive plan amendments, were approved. Additionally, LevelBlue announced an agreement to acquire Aon’s Cybersecurity and Intellectual Property Litigation consulting groups, including Stroz Friedberg and Elysium Digital, pending customary closing conditions. In personnel news, David DeBrunner will join Aon as Senior Vice President, Global Controller, and Chief Accounting Officer starting September 15, 2025. Piper Sandler reiterated its Overweight rating for Aon, maintaining a $393.00 price target after the company’s first analyst day in two decades. This event highlighted Aon’s focus on technology and data, reaffirming its financial targets for mid-single-digit or greater organic growth and margin expansion in fiscal year 2025.
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