Oil prices rebound sharply on smaller-than-feared OPEC+ output hike
Investing.com - Morgan Stanley upgraded Aon Corp (NYSE:AON) from Equalweight to Overweight on Thursday, raising its price target to $430.00 from $385.00. The insurance giant, currently valued at $78.14 billion, trades at a P/E ratio of 30.15. According to InvestingPro data, analyst price targets for AON range from $349 to $451.
The upgrade reflects Morgan Stanley’s confidence in Aon’s strategic investments in talent across construction, energy, health, and other sectors, which are expected to boost organic growth starting in the second half of 2025.
Morgan Stanley projects Aon will outperform similar-sized peers by 50-100 basis points in organic growth through 2026 and 2027, according to the research note accompanying the rating change.
The firm cited Aon’s leading adjusted operating margins as a key factor, noting these margins continue to expand as the company invests in its 3x3 plan and scales Aon Business Services.
While acknowledging near-term pricing weakness in the market, Morgan Stanley believes Aon is positioned for strong long-term business performance and will continue taking market share from competitors, supporting a premium valuation multiple.
In other recent news, Aon has signed a definitive agreement to sell most of NFP’s wealth business to Madison Dearborn Partners for an estimated $2.7 billion. The transaction, which includes Wealthspire Advisors and Fiducient Advisors, is expected to close in late Q4 2025, with Aon anticipating approximately $2.2 billion in cash proceeds after taxes. Additionally, Aon has made a strategic investment in eMed Population Health, aiming to enhance employer-sponsored access to GLP-1 therapy programs for weight management. This partnership follows the successful implementation of eMed’s program for Aon’s U.S. workforce earlier this year.
In legal developments, Aon is facing a lawsuit alleging fraud related to its marketing of credit insurance for start-ups. The case, filed in Delaware bankruptcy court, involves a trust representing creditors of the bankrupt AI company Vesttoo. Meanwhile, LevelBlue has completed its acquisition of Trustwave, becoming the world’s largest pure-play managed security service provider. The acquisition merges LevelBlue’s security capabilities with Trustwave’s managed detection and response services.
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