Raymond James upgrades Aon to 'market perform' on valuation
AON•Raymond James upgraded Aon to “market perform” from “underperform,” saying its valuation relative to Marsh has normalized. Aon shares were down 8.8% year to date as of the last close.
1. Rating change
Raymond James said Aon’s current valuation appropriately reflects the near-term impact of elevated leverage, EPS dilution and constrained capital allocation associated with its USI acquisition. Aon struck a $17 billion deal for USI Insurance Services in August; 13 of 23 brokerages rate Aon “buy” or higher, eight rate it “hold” and two rate it “sell” or lower, with a median price target of $363.50.
