Cautious Outlook for Marsh & McLennan: Weaker Organic Growth and Margin Projections Amid Macroeconomic Uncertainty

BMO Capital analyst Michael Zaremski maintained a Hold rating on Marsh & Mclennan Companies (MMC – Research Report) yesterday and set a price target of $224.00.

Michael Zaremski’s rating is based on a combination of factors that suggest a cautious outlook for Marsh & McLennan Companies. The company’s organic growth and margin projections in the Risk/Insurance and Consulting sectors appear to be softening, with trends indicating a decline in organic growth and pricing in key areas like Marsh and Guy Carpenter. Additionally, management has not dismissed the potential short-term risks to growth in the Consulting segment due to clients’ uncertainty about the macroeconomic environment.
Despite these challenges, there are positive aspects such as an improved free cash flow margin forecast, driven by lower capital expenditures and better working capital. However, the reduction in 2025/26 EBITDA and EPS estimates, primarily due to weaker organic growth, contributes to the Hold rating. While the company may benefit from technological advancements and recent hiring efforts, these factors are balanced by the current headwinds, leading to a cautious stance on the stock.

In another report released today, Piper Sandler also maintained a Hold rating on the stock with a $220.00 price target.

MMC’s price has also changed slightly for the past six months – from $222.060 to $212.100, which is a -4.49% drop .