Analyst Bob Huang of Morgan Stanley maintained a Hold rating on Marsh & Mclennan Companies (MMC – Research Report), retaining the price target of $225.00.
Bob Huang has given his Hold rating due to a combination of factors related to Marsh & McLennan Companies’ recent performance and market conditions. The company demonstrated a positive organic growth in its Oliver Wyman division, surpassing expectations, and managed to repurchase a significant amount of shares. However, the Risk & Insurance segment’s growth fell slightly short of consensus expectations, which may be attributed to challenging year-over-year comparisons.
Despite generally meeting expectations, the company faces challenges with higher-than-expected compensation and benefits expenses, indicating increased costs in talent retention. While the stock has performed well in a volatile market, its current valuation suggests that sustained growth and margin stability are necessary for further price appreciation. These factors collectively contribute to the Hold rating, reflecting a balanced view of potential risks and rewards.
MMC’s price has also changed slightly for the past six months – from $226.920 to $220.070, which is a -3.02% drop .