William Blair analyst Adam Klauber has maintained their neutral stance on MMC stock, giving a Hold rating on October 13.
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Adam Klauber has given his Hold rating due to a combination of factors impacting Marsh & McLennan Companies. Despite the company’s third-quarter cash EPS exceeding expectations, the organic growth in the RIS segment was lower than anticipated, primarily due to rate softening and economic uncertainties affecting demand from larger clients. These challenges are expected to persist, potentially limiting growth prospects as the company moves towards 2026.
Additionally, while management has introduced a new operational strategy and restructuring program aimed at significant cost savings, the potential for only low-single-digit organic growth remains a concern. The stock’s valuation, trading at a 19-times 2026 P/E multiple, aligns with industry peers but does not offer a compelling upside given the below-average near-term EPS growth potential. Consequently, Klauber maintains a Market Perform rating, reflecting a cautious outlook on the company’s ability to outperform in the current environment.
In another report released on October 13, Bank of America Securities also maintained a Hold rating on the stock with a $246.00 price target.