Marsh & McLennan stock rating upgraded by JPMorgan on valuation opportunity

Published 09/10/2025, 08:46
Marsh & McLennan stock rating upgraded by JPMorgan on valuation opportunity

Investing.com - JPMorgan upgraded Marsh & McLennan (NYSE:MMC) from Neutral to Overweight on Thursday, while slightly lowering its price target to $242.00 from $248.00.

The upgrade comes as MMC’s valuation multiple has compressed from a 2-turn premium to AON at the beginning of the year to roughly in line based on forward adjusted EPS, creating what JPMorgan considers an attractive entry point. The company trades at a P/E ratio of 24.56 and maintains an impressive track record of 55 consecutive years of dividend payments, with a current yield of 1.76%.According to InvestingPro, there are 8 additional key insights available about MMC’s valuation and growth prospects.

JPMorgan noted that organic growth at most brokers has moderated in recent quarters, with MMC’s top line slowing more significantly than peers’, contributing to tempered expectations and negative investor sentiment toward the stock.

The firm identified several specific concerns weighing on MMC shares, including personnel losses and the company’s exposure to management consulting through its Oliver Wyman unit.

Despite these challenges, JPMorgan views the current situation as "an opportunity to buy a strong franchise, with modest expectations at an attractive (although not overly depressed) valuation."

In other recent news, Marsh McLennan announced a quarterly dividend of $0.90 per share, payable on November 14, 2025, to stockholders of record as of October 2, 2025. The company also introduced two AI-powered platforms through its Mercer unit, aimed at enhancing workforce analytics by providing comprehensive talent landscape analysis. Additionally, Marsh McLennan’s insurance broker, Marsh, launched BrokerSafe, a new insurance facility offering US freight brokers stable and affordable auto liability coverage.

In terms of analyst updates, Raymond James reiterated its Outperform rating on Marsh McLennan, maintaining a positive outlook despite industry challenges. Meanwhile, Jefferies raised its price target for the company to $229, noting that Marsh McLennan delivered an in-line quarter. These developments highlight the company’s ongoing efforts to innovate and provide value to its stakeholders amid macroeconomic uncertainties.

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