Street Calls of the Week
Investing.com - Keefe, Bruyette & Woods upgraded Marsh & McLennan (NYSE:MMC) stock rating from Underperform to Market Perform while lowering its price target to $191.00 from $209.00 following the company’s third-quarter earnings report.
The upgrade comes after Marsh & McLennan shares experienced an 8%-plus selloff following its recent earnings announcement, bringing the valuation to a level KBW considers more appropriate given market conditions.
KBW raised its operating cash earnings per share estimates for the insurance broker to $9.60 for 2025, $10.30 for 2026, and $11.40 for 2027, reflecting the company’s third-quarter outperformance against previous projections.
The revised outlook incorporates expectations for higher Consulting revenues and improved margins in both the Risk and Insurance Services (RIS) and Consulting segments, partially offset by lower RIS revenues.
KBW noted that Marsh & McLennan’s Thrive program should help sustain margin improvement despite slowing property and casualty insurance pricing and diminishing fiduciary income tailwinds, with shares now trading at 18.1x KBW’s 2026 estimated cash earnings per share versus its 20.2x long-term average.
In other recent news, Marsh & McLennan Companies reported robust financial results for the third quarter of 2025, exceeding Wall Street expectations. The company achieved an earnings per share of $1.85, surpassing the forecast of $1.79. Revenue also outperformed projections, reaching $6.4 billion compared to the anticipated $6.34 billion. These results highlight the company’s strong performance during the period. Despite the positive financial outcomes, the company’s stock experienced a decline in pre-market trading due to broader market concerns. Investors will be keen to monitor how Marsh & McLennan navigates these external factors in the coming quarters. This update on Marsh & McLennan’s earnings provides a snapshot of the company’s recent financial health.
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