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BMO cuts Marsh McLennan price target, says shares ‘potentially not inexpensive’

BMO Capital lowered the firm’s price target on Marsh McLennan (MMC) to $208 from $222 and keeps a Market Perform rating on the shares, admitting that while the large move in shares “feels overdone,” the firm would make the case that the stock “screens as potentially not inexpensive” in the context of the current macro/pricing environment and the company’s organic growth underperformance. The firm, which believes the valuation “may not be as attractive following Thursday’s sell-off,” views the stock as unlikely to work unless the company communicates a better growth profile or uncertainty increases around the market’s earnings power.

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