Gold prices slip lower; consolidating after recent gains
On Monday, Keefe, Bruyette & Woods analysts increased the price target for Aon Corp (NYSE: NYSE:AON) stock to $416 from $409, while maintaining an Outperform rating. The adjustment follows Aon’s Investor Day, where the company outlined its strategic plans.
The analysts highlighted Aon’s client-focused approach, which they believe will lead to mid-single-digit organic growth and consistent margin expansion. This strategy is expected to drive double-digit free cash flow growth, which the company plans to reinvest in mergers and acquisitions and share repurchases. The company has demonstrated strong dividend performance, having maintained payments for 46 consecutive years with a current yield of 0.84%.
The analysts updated their earnings per share (EPS) estimates for Aon, raising the 2025 and 2026 expectations to $16.90 and $19.35, respectively, from previous estimates of $16.85 and $19.00. The adjustments are based on anticipated faster organic revenue growth and slightly higher margins. InvestingPro analysis shows the company maintains a strong financial health score of "GOOD," with particularly robust profitability metrics.
Additionally, the analysts introduced an initial EPS estimate for 2027 at $21.85, projecting continued margin expansion and accelerated share repurchases. The firm’s outlook reflects confidence in Aon’s ability to sustain cash EPS growth and enhance share price performance.
Aon’s Investor Day presentation was noted for effectively detailing strategic components, which reinforced the analysts’ positive outlook on the company’s future growth prospects.
In other recent news, Aon plc hosted its first Investor Day in nearly two decades, reaffirming its growth strategy and financial outlook. Management emphasized the "Aon United" business model, projecting sustainable mid-single-digit or greater organic revenue growth and a double-digit free cash flow growth. The company remains committed to its 2025 financial guidance and aims for a double-digit free cash flow compound annual growth rate over the 2023-2026 period. Analysts from Keefe, Bruyette & Woods have maintained an Outperform rating for Aon, citing the company’s 3x3 plan as a pivotal element for growth and margin expansion. Additionally, Goldman Sachs has upgraded Aon to a Buy rating, highlighting expectations of stronger organic growth and free cash flow by 2026. In other developments, Aon reported that recent storms in Europe could result in insured losses amounting to hundreds of millions of euros. Furthermore, Aon announced the appointment of Andy Marcell as CEO of Global Solutions, a move aligned with its strategic plan to enhance client services. These developments underscore Aon’s ongoing efforts to navigate industry challenges and enhance shareholder value.
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