CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lift our 12-month target price by $5 to $200, valuing MMC shares at 23.3x our 2024 EPS estimate of $8.60 (upped by $0.20) and at 21.2x our 2025 EPS estimate of $9.45 (raised by $0.15), versus its five-year average forward multiple of 22.4x and the peer average of 21.2x. We increase our 2023 EPS estimate by $0.25 to $7.95 after Q3 EPS of $1.57 versus $1.18 topped our $1.38 EPS estimate and the $1.39 consensus view on 10% higher revenues and wider operating margins. We lift our 2023 revenue forecast to growth of 10%-14% after YTD revenues rose 12%. We also raise our 2024 revenue forecast to 8%-12% (from 7%-10), as MMC continues to benefit from a strong insurance pricing environment and the lack of any meaningful restructuring actions (unlike several peers), which should enable MMC shares to retain their premium valuation to peers. Currently trading at 24x our 2023 EPS estimate and yielding 1.5%, a premium to peer and historical averages, the shares are fairly valued, in our view, but worth holding.