Barclays Maintains an 'Equalweight' on Aon Corp (AON); CEO & CFO Focused on FY11 Brokerage Margin Improvement Goal

Barclays maintains an 'Equalweight' on Aon Corp (NYSE: AON) price target of $52.00.

Barclays analyst says, "We met with Aon's CEO Gregory Case and CFO Christa Davies yesterday. Our main takeaways are 1) Aon remains committed to generating Brokerage margin improvement in FY11, 2) CEO Greg Case is not satisfied with Aon's pace of organic revenue growth, 3) Management does not currently plan to do another large acquisition, and 4) economic headwinds persist in the U.S. and Europe."

"We expect Aon to benefit from improving organic revenue growth and positive operating leverage once the economy recovers. Additionally, AON could benefit from increased Asia-Pacific property reinsurance rates. The Hewitt acquisition increases Aon's economic exposure with Aon's Consulting business representing 40% of revenues, up from less than 20% prior to the acquisition. AON's valuation is attractive in our view at 12.3x our 2012 EPS estimate of $3.75 (below Marsh & McLennan (NYSE: MMC) but above Willis (NYSE: WSH))."

For more ratings news on Aon Corp click here and for the rating history of Aon Corp click here.

Shares of Aon Corp closed at $46.04 yesterday.

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