TD Cowen maintains Aon stock Buy rating, $468 target

Wednesday

TD Cowen analysts have reaffirmed their Buy rating on Aon Corp (NYSE:AON) shares, with a consistent price target of $468.00. The brokerage firm’s analysts see Aon as a strong contender for significant growth in 2025, citing the company’s strategic advantages and recent business moves. In a statement, analysts highlighted Aon’s successful integration of data and expertise in their Risk Capital and Human Capital segments as a key driver for continued margin growth and a robust long-term organic revenue increase. The company’s strong financial foundation is evidenced by its 46-year track record of maintaining dividend payments, as noted by InvestingPro.

Analysts at TD Cowen are optimistic about Aon’s potential, particularly in light of the current market volatility. They consider insurance brokers, and Aon in particular, as a defensive subsector well-positioned to weather economic uncertainties. Aon’s acquisition of NFP in April 2024, which marked the company’s expansion into mid-market retail broking, was also noted as a positive step that should contribute to Aon’s performance.

The price target set by TD Cowen implies a 20% upside from the current market price and is based on a multiple of 24.2 times the estimated earnings per share (EPS) for 2026. Currently trading at a P/E ratio of 31.1x, Aon is valued above the InvestingPro Fair Value estimate, suggesting investors should carefully consider entry points. This valuation approach is informed by a sum-of-the-parts analysis, taking into account segment multiples that align with peer valuations. For deeper insights into Aon’s valuation metrics and growth potential, access the comprehensive Pro Research Report available on InvestingPro.

Aon’s strategic focus on leveraging data and expertise across its business units is expected to sustain its growth trajectory. The firm’s analysts believe that this strategy will enable Aon to continue expanding its margins while achieving mid-single-digit or higher organic revenue growth over the long term.

In conclusion, TD Cowen’s analysts have expressed confidence in Aon’s future prospects, maintaining their Buy rating and a price target that suggests significant growth potential for the company’s shares. The firm’s strategic initiatives and market positioning, combined with its proven track record of profitability and strong financial health metrics, are seen as key factors that will drive Aon’s success in the coming years.

In other recent news, Aon Corp has made significant announcements regarding its executive leadership. The company revealed that Eric Andersen, who has served as President since 2018, will transition to a senior advisory role until June 2026. In light of this change, CEO Greg Case will assume the additional role of President. This leadership shift follows the retirement of former CFO Christa Davies in 2024 and aligns with Aon’s strategic goals.

Analysts have weighed in on these developments, with BMO Capital Markets maintaining a Market Perform rating and a $373 price target, while Evercore ISI affirmed an Outperform rating with a $420 target. Keefe, Bruyette & Woods also raised their price target to $414, citing Aon’s consistent performance and potential for growth. The analysts have revised their earnings per share estimates for 2025 and 2026, considering factors like increased share count and taxes.

Additionally, Aon announced that Michael Neller will transition from Chief Accounting Officer to Deputy Global Chief People Officer, with a search underway for his successor. Investors and stakeholders will be observing how these leadership changes impact Aon’s operations and strategic direction.

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