AON (NYSE:AON) Given New $417.00 Price Target at Keefe, Bruyette & Woods

Key Points

• Keefe, Bruyette & Woods raised AON’s price target from $412 to $417 and maintained an “outperform” rating, implying 27.66% upside from the previous close.
• AON shares rose 1.6% to $326.66, while analysts collectively rate the stock “Moderate Buy” with an average price target of $399.88. The company narrowly exceeded quarterly EPS expectations, reporting $3.81 versus a $3.80 consensus estimate.
• Analysts cited potential benefits from AON’s planned $17 billion USI acquisition, including about $395 million in annual adjusted EBITDA synergies, though investors remain concerned about added debt, leverage, integration risks and delayed earnings accretion.

AON (NYSE:AON - Get Free Report) had its target price hoisted by research analysts at Keefe, Bruyette & Woods from $412.00 to $417.00 in a report issued on Tuesday, Benzinga reports. The firm presently has an "outperform" rating on the financial services provider's stock. Keefe, Bruyette & Woods' price objective suggests a potential upside of 27.66% from the company's previous close.

Several other brokerages have also recently issued reports on AON. Wells Fargo & Company cut their target price on AON from $419.00 to $383.00 and set an "overweight" rating on the stock in a research report on Tuesday. Mizuho dropped their price objective on AON from $437.00 to $398.00 and set an "outperform" rating on the stock in a research note on Tuesday. Weiss Ratings raised shares of AON from a "hold (c)" rating to a "hold (c+)" rating in a report on Wednesday, August 19th. JPMorgan Chase & Co. upped their target price on shares of AON from $396.00 to $412.00 and gave the stock an "overweight" rating in a research note on Monday, July 13th. Finally, Barclays raised their price target on shares of AON from $372.00 to $382.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 7th. Twelve research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $399.88.

AON Stock Up 1.6%

Shares of NYSE AON traded up $5.14 during mid-day trading on Tuesday, reaching $326.66. 1,157,713 shares of the company's stock traded hands, compared to its average volume of 1,425,834. 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 business has a 50-day simple moving average of $353.25 and a 200 day simple moving average of $333.95. The stock has a market cap of $69.29 billion, a P/E ratio of 18.01, a PEG ratio of 1.83 and a beta of 0.69. AON has a 1-year low of $304.59 and a 1-year high of $382.34.

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

Insiders Place Their Bets

In other news, General Counsel Darren Zeidel sold 1,950 shares of the firm's stock in a transaction that occurred on Friday, July 17th. The shares were sold at an average price of $372.05, for a total value of $725,497.50. Following the completion of the transaction, the general counsel directly owned 13,404 shares in the company, valued at approximately $4,986,958.20. This trade represents a 12.70% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Over the last ninety days, insiders sold 4,450 shares of company stock worth $1,659,242. 1.00% of the stock is owned by insiders.

Institutional Trading of AON

Institutional investors and hedge funds have recently made changes to their positions in the stock. Wealth Watch Advisors INC purchased a new position in shares of AON in the third quarter worth about $25,000. University of Texas Texas AM Investment Management Co. purchased a new stake in AON during the 4th quarter valued at about $27,000. Kemnay Advisory Services Inc. bought a new position in AON during the 4th quarter worth approximately $29,000. Strive Asset Management LLC purchased a new position in AON in the 3rd quarter worth approximately $35,000. Finally, Cornerstone Financial Management LLC bought a new stake in AON in the fourth quarter valued at approximately $37,000. Hedge funds and other institutional investors own 86.14% of the company's stock.

More AON News

Here are the key news stories impacting AON this week:

• Positive Sentiment: Mizuho maintained an “outperform” rating while lowering its price target from $437 to $398, implying substantial upside from recent levels. Mizuho price target report
• Positive Sentiment: Cantor Fitzgerald retained an “overweight” rating and reduced its target from $445 to $433, still indicating significant potential appreciation. Cantor Fitzgerald price target report
• Positive Sentiment: The USI acquisition would expand Aon’s U.S. middle-market presence, strengthen its excess-and-surplus insurance capabilities, and broaden its data and client platform. Aon expects approximately $395 million in annual run-rate adjusted EBITDA synergies and adjusted EPS accretion beginning in 2028. Aon USI acquisition announcement
• Neutral Sentiment: The transaction is expected to close in the fourth quarter, subject to regulatory approval. USI CEO Mike Sicard is slated to become Aon’s president and global CEO of middle-market operations. CNBC Aon USI deal report
• Negative Sentiment: AON declined sharply following the announcement as investors weighed the $17 billion purchase price and the planned issuance of new debt. Concerns center on leverage, execution risk, integration costs and the long wait before expected earnings accretion in 2028. Seeking Alpha Aon USI acquisition market reaction

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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