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On Thursday, Raymond (NSE:RYMD) James reinforced its confidence in Marsh & McLennan Companies, Inc. (NYSE:MMC) by maintaining an Outperform rating and a $250.00 price target. The firm’s analyst, Gregory Peters, provided insights on the company’s prospects, highlighting its potential for higher organic growth and adjusted operating income margin expansion in comparison to its industry peer AON through 2025.
Marsh & McLennan’s management had previously announced a revision in the definition of adjusted earnings per share (EPS), which would now exclude the impact of two non-cash items: acquisition-related amortization and other net benefit credit, starting in 2025. This adjustment has led Raymond James to update its published estimates to align with the new basis for the years 2025 and 2026.
According to the updated estimates from Raymond James, Marsh & McLennan’s adjusted EPS is projected to be $9.45 for the year 2025 and $10.20 for 2026. It is important to note that these revisions are only to the adjusted EPS figures, and the firm’s underlying forward projections for the company remain unchanged.
The analyst’s reiteration of the Outperform rating is positioned as part of a market-neutral strategy within the insurance brokerage sector. This strategy takes into account the company’s strong potential relative to its competitors. The price target of $250.00 reflects Raymond James’ continued optimism about the stock’s performance potential.
Marsh & McLennan has not yet responded to the reiteration of the Outperform rating and price target. The company’s shares continue to be traded on the New York Stock Exchange under the ticker symbol MMC.
In other recent news, Marsh McLennan has announced a quarterly dividend of $0.815 per share, scheduled for payment in May 2025, reflecting its ongoing commitment to returning value to shareholders. Additionally, Marsh McLennan’s subsidiary, Mercer (NASDAQ:MERC), is set to acquire SECOR Asset Management, a global investment firm with significant assets under advisement and management, pending regulatory approvals. This acquisition is expected to enhance Mercer’s investment solutions for institutional investors. Marsh McLennan Agency has also expanded its reach by acquiring Arthur Hall Insurance, aiming to bolster its business insurance capabilities and establish a presence in Delaware.
In terms of analyst activities, Raymond James increased its price target for Marsh & McLennan to $250, maintaining a Strong Buy rating, citing potential for higher organic growth and operating margin expansion. Conversely, Keefe, Bruyette & Woods lowered its price target to $210 with an Underperform rating due to anticipated lower margins and decreased earnings per share estimates. These adjustments highlight differing perspectives on Marsh McLennan’s financial outlook and market position. These developments underscore Marsh McLennan’s strategic moves and the varied analyst expectations surrounding its performance.
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