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Investing.com - BMO Capital lowered its price target on Marsh & McLennan (NYSE:MMC) to $208.00 from $222.00 on Monday, while maintaining a Market Perform rating on the insurance broker’s stock.
The research firm cited concerns about the company’s organic growth underperformance compared to industry peers, despite acknowledging that the recent stock price decline may have been excessive. This comes even as the company maintains strong fundamentals, with revenue growth of 10.47% and a 55-year track record of consistent dividend payments.
BMO Capital adjusted its 2026 organic growth forecast for Marsh & McLennan downward to 3.8% from 4.0%, while simultaneously raising its adjusted operating margin projection to 27.7% from 27.5%, crediting the improvement to the company’s Thrive Savings program.
The firm’s adjusted earnings per share estimates for 2026 and 2027 were revised upward by 1% and 2% respectively, reflecting expectations for stronger margins and increased share buybacks, partially offset by higher interest expenses.
BMO Capital suggested that some "macro indigestion" might be necessary before the market returns to appreciating Marsh & McLennan’s earnings volatility advantage relative to competitors.
In other recent news, Marsh & McLennan reported impressive financial results for the third quarter of 2025. The company exceeded Wall Street expectations with an earnings per share of $1.85, surpassing the forecasted $1.79. Revenue also topped projections, reaching $6.4 billion compared to the anticipated $6.34 billion. Despite these strong results, the stock experienced a decline in pre-market trading, reflecting broader market concerns. Additionally, Keefe, Bruyette & Woods upgraded Marsh & McLennan’s stock rating from Underperform to Market Perform. This upgrade was based on the valuation following an 8%-plus selloff in the company’s shares after its earnings announcement. The firm also adjusted its price target for the stock, lowering it to $191.00 from $209.00. These recent developments highlight the company’s financial performance and market perception.
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