Get Premium Data for Cyber Monday: Up to 55% Off InvestingProCLAIM SALE

Marsh & McLennan stock price target raised by Keefe Bruyette

EditorTanya Mishra
Published 10/22/2024, 10:09 AM
MMC
-

Marsh & McLennan Companies, Inc. (NYSE: MMC) had its price target modestly increased by Keefe, Bruyette & Woods from $209.00 to $212.00.

The firm has chosen to maintain its Underperform rating on the stock. This adjustment follows the company's third-quarter earnings report and subsequent conference call.

The analyst at Keefe, Bruyette & Woods adjusted the price target based on an updated evaluation of Marsh & McLennan's cash earnings per share (EPS) estimates for the coming years.

The new target is grounded on 22.0 times the revised 2025 cash EPS estimate and 20.3 times the updated 2026 cash EPS forecast.

Despite the recent third-quarter results surpassing expectations, the firm has revised its operating cash EPS projections downward for 2024, 2025, and 2026 to $8.85, $9.65, and $10.45, respectively, from the previous forecasts of $9.34, $10.05, and $10.81.

The revised estimates take into account a lower-than-anticipated Risk & Insurance Services (RIS) margin and an anticipated increase in interest expenses, which are somewhat balanced by higher Consulting margins. Additionally, the firm has updated its operating cash EPS calculation to exclude other net benefit credits that are non-cash, aligning with Marsh & McLennan's planned reporting changes.

In other recent news, Marsh & McLennan displayed strong performance in Q3 2024, reporting a 5% rise in underlying revenue and a 12% increase in adjusted operating income. The company also announced an adjusted EPS of $1.63, up 4% year-over-year, and a consolidated revenue of $5.7 billion.

In a significant expansion move, Marsh & McLennan acquired McGriff Insurance Services for $7.75 billion, a deal expected to close by the end of the year. The acquisition is anticipated to be modestly accretive to adjusted EPS in the first year. BMO Capital Markets increased its price target on Marsh & McLennan shares to $228.00 while maintaining a Market Perform rating.

RBC Capital also adjusted its price target to $242.00, maintaining a Sector Perform rating. On the other hand, Goldman Sachs maintained its Sell rating with a price target of $220.00.

InvestingPro Insights

Marsh & McLennan Companies, Inc. (NYSE:MMC) continues to demonstrate financial resilience despite the cautious outlook from analysts. According to InvestingPro data, the company boasts a market capitalization of $109.06 billion and a P/E ratio of 27.18, indicating investor confidence in its earnings potential.

InvestingPro Tips highlight MMC's strong dividend history, having raised its dividend for 15 consecutive years and maintained payments for 54 years. This consistency aligns with the company's stable financial position, even as analysts adjust their forecasts. The company's dividend yield stands at 1.47%, with a notable dividend growth of 14.79% over the last twelve months.

While Keefe, Bruyette & Woods maintains an Underperform rating, it's worth noting that MMC has shown a 20.05% price total return over the past year. The company's revenue growth of 7.84% and EBITDA growth of 15.71% in the last twelve months suggest ongoing operational improvements, which could potentially offset concerns about slowing P&C rate increases.

For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips on Marsh & McLennan, providing deeper insights into the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.