Wang & Lee Group board approves 250-to-1 reverse share split
On Thursday, Raymond (NSE:RYMD) James expressed continued confidence in Marsh & McLennan Companies, Inc. (NYSE:MMC) by maintaining an Outperform rating and a $250.00 price target. The research firm’s analyst, Gregory Peters, highlighted the company’s potential for higher organic growth and adjusted operating income margin expansion when compared to its peer AON through the year 2025. This outlook is supported by MMC’s solid financial performance, with revenue growth of 7.57% and a healthy gross profit margin of 44.54% in the last twelve months.
Marsh & McLennan’s management had previously announced a revision in the definition of adjusted earnings per share (EPS), which will now exclude the impact of acquisition-related amortization and other net benefit credit, starting in 2025. This change has led Raymond James to adjust their published earnings estimates to align with the new basis for the years 2025 and 2026.
The updated estimates for adjusted EPS are now $9.45 for the year 2025 and $10.20 for 2026. However, Peters noted that despite the change in EPS estimates, the underlying forward projections in their model remain unchanged. This suggests that the firm’s overall outlook on the company’s financial performance has not been altered by the accounting update.
The analyst’s reiteration of the Outperform rating is based on a market neutral strategy within their insurance brokerage coverage. The strategy reflects a belief that Marsh & McLennan is well-positioned for growth relative to its competitors.
Marsh & McLennan’s shares continue to be viewed favorably by Raymond James, with the firm expecting the company to outperform within its sector, driven by strong organic growth prospects and margin expansion potential.
In other recent news, Marsh & McLennan Companies, Inc. has announced a quarterly dividend of $0.815 per share, scheduled for payment on May 15, 2025, to shareholders of record as of April 3, 2025. This move underscores the company’s ongoing commitment to providing returns to its investors. Additionally, Raymond James has maintained an Outperform rating for Marsh & McLennan, with a price target set at $250, citing the company’s potential for higher organic growth and adjusted operating income margin expansion compared to its peers. The firm has also updated its estimates, projecting an adjusted EPS of $9.45 for 2025 and $10.20 for 2026.
In terms of strategic expansions, Marsh McLennan Agency, a subsidiary of Marsh, has acquired Arthur Hall Insurance to enhance its business insurance capabilities and establish a presence in Delaware. This acquisition aligns with Marsh McLennan’s strategy to broaden its expertise across various industries. Furthermore, Mercer (NASDAQ:MERC), another division of Marsh McLennan, has agreed to acquire SECOR Asset Management, a transaction expected to bolster its investment solutions for institutional investors. This acquisition is pending regulatory approvals and client consents, with completion anticipated in the second quarter of 2025.
Raymond James has also adjusted its price target for Marsh & McLennan from $240 to $250, maintaining a Strong Buy rating. Analyst Gregory Peters highlighted the company’s potential for significant growth and noted its relative valuation discount compared to its competitor, AON. These developments reflect Marsh & McLennan’s strategic efforts to strengthen its market position and enhance shareholder value.
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