Analyst Joshua Shanker from Bank of America Securities reiterated a Hold rating on Marsh & Mclennan Companies and decreased the price target to $243.00 from $246.00.
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Joshua Shanker has given his Hold rating due to a combination of factors impacting Marsh & McLennan Companies. The company’s third-quarter earnings per share slightly exceeded expectations, driven by non-core contributions such as increased interest and investment income, as well as a lower tax rate. However, the overall organic growth and adjusted operating margin did not meet estimates, indicating some operational challenges.
Additionally, the Risk and Insurance Services segment showed weaker growth than anticipated, particularly in the US and Canada, due to macroeconomic uncertainties affecting client behavior. Although the Consulting segment performed better than expected, the operating margins in both segments fell short of projections. The company’s valuation appears to align with the forward growth outlook, leading to the reaffirmation of a Neutral rating, with a price objective adjusted to $243.
In another report released today, Wells Fargo also maintained a Hold rating on the stock with a $212.00 price target.
MMC’s price has also changed moderately for the past six months – from $231.320 to $186.480, which is a -19.38% drop .