AON (NYSE:AON) Given New $398.00 Price Target at Mizuho

Key Points

• Mizuho cut AON’s price target from $437 to $398 while maintaining an “outperform” rating, implying approximately 22.5% upside from the stock’s reported price of $324.96.
• Analyst sentiment remains positive overall, with 12 Buy ratings and seven Holds producing a “Moderate Buy” consensus and an average price target of $402.06.
• AON slightly exceeded quarterly EPS estimates at $3.81 versus $3.80, while revenue of $4.25 billion fell short of the $4.28 billion consensus; revenue still increased 2.2% year over year.

AON (NYSE:AON - Get Free Report) had its price objective reduced by investment analysts at Mizuho from $437.00 to $398.00 in a report issued on Tuesday, Benzinga reports. The brokerage currently has an "outperform" rating on the financial services provider's stock. Mizuho's target price points to a potential upside of 22.48% from the stock's current price.

AON has been the topic of a number of other research reports. Roth Capital set a $380.00 price target on shares of AON in a report on Tuesday. Piper Sandler reaffirmed a "neutral" rating and set a $349.00 price target on shares of AON in a research report on Tuesday. Citigroup lifted their price objective on AON from $420.00 to $435.00 and gave the stock a "buy" rating in a report on Thursday, July 30th. Barclays boosted their price objective on AON from $372.00 to $382.00 and gave the company an "equal weight" rating in a research note on Tuesday, July 7th. Finally, UBS Group reissued a "neutral" rating on shares of AON in a research report on Monday. Twelve analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat.com, AON presently has an average rating of "Moderate Buy" and an average price target of $402.06.

AON Stock Performance

Shares of NYSE AON traded up $3.44 during mid-day trading on Tuesday, reaching $324.96. 698,384 shares of the company's stock were exchanged, compared to its average volume of 1,422,893. The firm has a 50-day moving average price of $353.25 and a two-hundred day moving average price of $333.95. The company has a debt-to-equity ratio of 1.34, a current ratio of 1.54 and a quick ratio of 1.54. The firm has a market capitalization of $68.93 billion, a price-to-earnings ratio of 17.88, a price-to-earnings-growth ratio of 1.83 and a beta of 0.69. AON has a 52 week low of $304.59 and a 52 week high of $382.34.

AON (NYSE:AON - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The financial services provider reported $3.81 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.80 by $0.01. The business had revenue of $4.25 billion during the quarter, compared to the consensus estimate of $4.28 billion. AON had a net margin of 22.27% and a return on equity of 42.13%. The firm's quarterly revenue was up 2.2% compared to the same quarter last year. During the same quarter last year, the company posted $3.49 earnings per share. Analysts predict that AON will post 19.06 EPS for the current year.

Insider Transactions at AON

In other AON news, General Counsel Darren Zeidel sold 1,900 shares of the business's stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $377.76, for a total value of $717,744.00. Following the completion of the transaction, the general counsel owned 11,504 shares of the company's stock, valued at $4,345,751.04. The trade was a 14.17% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders have sold 4,450 shares of company stock worth $1,659,242 in the last three months. Insiders own 1.00% of the company's stock.

Hedge Funds Weigh In On AON

A number of hedge funds and other institutional investors have recently modified their holdings of AON. California State Teachers Retirement System lifted its stake in AON by 32,835.5% in the second quarter. California State Teachers Retirement System now owns 101,761,829 shares of the financial services provider's stock worth $33,753,381,000 after purchasing an additional 101,452,856 shares during the last quarter. Dodge & Cox boosted its holdings in AON by 126.6% in the fourth quarter. Dodge & Cox now owns 7,852,456 shares of the financial services provider's stock valued at $2,770,975,000 after acquiring an additional 4,387,773 shares in the last quarter. Norges Bank purchased a new position in AON during the 4th quarter valued at $1,155,981,000. Viking Global Investors LP bought a new position in AON in the 3rd quarter worth $504,424,000. Finally, Balyasny Asset Management L.P. lifted its position in shares of AON by 40,219.8% in the 3rd quarter. Balyasny Asset Management L.P. now owns 846,715 shares of the financial services provider's stock worth $301,922,000 after purchasing an additional 844,615 shares during the period. 86.14% of the stock is currently owned by hedge funds and other institutional investors.

AON News Summary

Here are the key news stories impacting AON this week:

• Positive Sentiment: The acquisition would significantly expand Aon’s presence in the U.S. middle-market insurance sector, adding USI’s risk management, employee benefits and retirement-plan businesses. USI generates approximately $3 billion in annual revenue. Aon to acquire USI to establish the premier U.S. middle-market platform
• Positive Sentiment: Aon expects revenue and cost synergies to produce approximately $395 million in annual run-rate net adjusted EBITDA and says the deal should become accretive to adjusted earnings per share in 2028. USI also increases Aon’s exposure to the fast-growing excess and surplus insurance market. Aon CEO discusses USI acquisition
• Neutral Sentiment: USI Chairman and CEO Mike Sicard is expected to become Aon’s president and global CEO of Middle Market after the transaction closes, which is anticipated in the fourth quarter pending regulatory approvals. Aon to Buy USI Insurance in $17 Billion Deal
• Negative Sentiment: The purchase will be financed with new debt, raising concerns about leverage, execution risk and whether the $17 billion price is justified before synergies are delivered. Reports noted that Aon’s shares declined sharply following the announcement. Aon falls on USI acquisition
• Positive Sentiment: Cantor Fitzgerald lowered its AON price target from $445 to $433 but maintained an “overweight” rating, implying substantial upside and signaling continued confidence in Aon’s long-term prospects. Cantor Fitzgerald AON price target

AON Company Profile

Aon plc is a global professional services firm that provides a broad suite of risk, retirement and health solutions to corporations, institutions and individuals. The company operates primarily as an insurance broker and risk adviser, helping clients identify, quantify and transfer risk across property, casualty, cyber and other areas. Aon also offers reinsurance brokerage and capital market solutions that connect insurers, reinsurers and corporate buyers.

In addition to traditional brokerage activities, Aon delivers consulting and outsourcing services in areas such as human capital, benefits, and retirement plan design and administration.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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