Jefferies Cuts Price Target on Marsh & McLennan (MMC) Following 3Q Report
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Jefferies maintained a Hold rating on Marsh & McLennan (NYSE: MMC), and cut the price target to $68.00 (from $69.00), following the company's 3Q earnings report. Consolidated organic growth of 1% was solidly below consensus' 2.6%. However, Oliver Wyman's 9% decline created a significant drag on the consolidated top-line results. Margins expanded ~200-300bps in RIS and Consulting.
Analyst David Styblo commented, "In our recent preview, we thought brokers would post tepid organic growth. In particular, the Street wasn't adequately modeling OW's drag on MMC. Today's organic growth update for MMC looked worse than what should have been expected. Yes it was a little soft, but MMC's 3.5% pullback (S&P down 0.4%) seemed a little harsh particularly as management drove strong margin improvement in both segments. Valuation is getting more attractive, but we remain Hold."
Shares of Marsh & McLennan closed at $62.70 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
Related EntitiesJefferies & Co, Standard & Poor's, Earnings
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