In a report released today, Bob Huang from Morgan Stanley maintained a Buy rating on Aon, with a price target of $430.00.
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Bob Huang has given his Buy rating due to a combination of factors that suggest Aon is positioned for superior organic growth compared to its peers. Despite some bearish concerns about valuation and a weakening pricing environment, Huang believes that Aon’s strategic investments in talent will lead to significant improvements in organic growth. The company is expected to outperform competitors like Marsh, especially given the recent talent retention issues faced by Marsh.
While Aon’s valuation is currently seen as a premium compared to Marsh, Huang argues that this is justified by the company’s potential for higher organic growth. The stability of Aon’s growth setup, bolstered by its talent investments, is anticipated to provide a competitive edge. Additionally, while the M&A environment is not the primary growth driver, it is considered a beneficial supplement to Aon’s growth trajectory.
In another report released on September 17, TD Cowen also maintained a Buy rating on the stock with a $419.00 price target.