William Blair analyst Adam Klauber has maintained their neutral stance on MMC stock, giving a Hold rating on April 11.
Adam Klauber has given his Hold rating due to a combination of factors affecting Marsh & McLennan Companies. The company’s first-quarter cash EPS exceeded expectations, but this was largely due to a one-time tax benefit rather than strong underlying performance. Organic growth was slightly below estimates, and margins decreased, indicating challenges in sustaining growth momentum.
Additionally, the company faces headwinds from lower fiduciary income and property rate pressures, which could hinder significant margin expansion. Although there is potential for improvement as comparisons ease and acquisitions are integrated, the anticipated organic growth rate remains modest. The valuation is considered fair, but the near-term EPS growth potential is below average, leading to the Hold rating.
According to TipRanks, Klauber is a 4-star analyst with an average return of 10.8% and a 57.73% success rate. Klauber covers the Financial sector, focusing on stocks such as Progressive, Baldwin Insurance Group, and Skyward Specialty Insurance Group, Inc..
In another report released on April 11, Barclays also maintained a Hold rating on the stock with a $249.00 price target.