AON (NYSE:AON) Upgraded at BMO Capital Markets

Key Points

• BMO Capital Markets upgraded AON from “market perform” to “outperform” and set a $380 price target, implying approximately 13.9% upside from the current price.
• Analyst opinions remain mixed: AON has a consensus “Hold” rating and an average price target of $369.12, based on 13 Buy, six Hold, and three Sell ratings.
• AON’s latest quarterly results exceeded expectations, with earnings of $3.36 per share versus the $3.30 consensus estimate and revenue of $4.10 billion, up 2.6% year over year.

AON (NYSE:AON - Get Free Report) was upgraded by analysts at BMO Capital Markets from a "market perform" rating to an "outperform" rating in a research note issued to investors on Tuesday, Marketbeat Ratings reports. The brokerage presently has a $380.00 price target on the financial services provider's stock. BMO Capital Markets's price target suggests a potential upside of 13.86% from the company's current price.

Other analysts have also recently issued research reports about the company. TD Cowen upped their price objective on AON from $416.00 to $420.00 and gave the company a "buy" rating in a research note on Monday, September 14th. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating on shares of AON in a report on Tuesday, September 1st. Mizuho decreased their target price on AON from $366.00 to $324.00 and set an "outperform" rating for the company in a research report on Wednesday, October 7th. The Goldman Sachs Group boosted their price target on AON from $375.00 to $401.00 and gave the company a "buy" rating in a report on Friday, July 31st. Finally, Bank of America upped their price target on AON from $298.00 to $327.00 and gave the company an "underperform" rating in a research report on Wednesday, July 15th. Thirteen equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $369.12.

AON Price Performance

AON opened at $333.74 on Tuesday. The company has a market capitalization of $70.79 billion, a P/E ratio of 18.28, a PEG ratio of 1.66 and a beta of 0.70. The company has a 50-day moving average of $301.75 and a 200-day moving average of $326.03. The company has a debt-to-equity ratio of 2.58, a quick ratio of 1.54 and a current ratio of 4.72. AON has a 1-year low of $266.33 and a 1-year high of $382.34.

AON (NYSE:AON - Get Free Report) last issued its quarterly earnings results on Wednesday, October 28th. The financial services provider reported $3.36 EPS for the quarter, topping the consensus estimate of $3.30 by $0.06. The business had revenue of $4.10 billion for the quarter, compared to analysts' expectations of $4.08 billion. AON had a net margin of 22.24% and a return on equity of 40.46%. The company's quarterly revenue was up 2.6% compared to the same quarter last year. During the same quarter last year, the company posted $3.05 earnings per share. Equities analysts expect that AON will post 18.55 EPS for the current fiscal year.

Insider Transactions at AON

In related news, Director Lester Knight bought 20,000 shares of the firm's stock in a transaction on Wednesday, September 2nd. The stock was bought at an average cost of $327.48 per share, for a total transaction of $6,549,600.00. Following the completion of the purchase, the director directly owned 163,000 shares in the company, valued at approximately $53,379,240. The trade was a 13.99% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 1.00% of the stock is owned by corporate insiders.

Institutional Trading of AON

Institutional investors and hedge funds have recently made changes to their positions in the stock. MassMutual Private Wealth & Trust FSB boosted its position in shares of AON by 5.3% during the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 650 shares of the financial services provider's stock valued at $216,000 after purchasing an additional 33 shares in the last quarter. Aspen Grove Capital LLC raised its holdings in shares of AON by 4.8% in the 1st quarter. Aspen Grove Capital LLC now owns 737 shares of the financial services provider's stock worth $238,000 after purchasing an additional 34 shares in the last quarter. Novem Group raised its holdings in shares of AON by 1.0% in the 3rd quarter. Novem Group now owns 3,460 shares of the financial services provider's stock worth $958,000 after purchasing an additional 35 shares in the last quarter. KCM Investment Advisors LLC lifted its stake in AON by 6.2% during the first quarter. KCM Investment Advisors LLC now owns 651 shares of the financial services provider's stock valued at $210,000 after purchasing an additional 38 shares during the last quarter. Finally, RDA Financial Network lifted its stake in AON by 2.9% during the second quarter. RDA Financial Network now owns 1,451 shares of the financial services provider's stock valued at $481,000 after purchasing an additional 41 shares during the last quarter. 86.14% of the stock is currently owned by institutional investors and hedge funds.

AON News Roundup

Here are the key news stories impacting AON this week:

• Positive Sentiment: Raymond James upgraded Aon to “Market Perform” from “Underperform,” removing a prior bearish stance and signaling that the stock’s risk/reward profile has improved. Raymond James upgrades Aon to market perform from underperform
• Positive Sentiment: Wells Fargo raised its price target to $364 from $323 and assigned an “Overweight” rating, while Cantor Fitzgerald lifted its target to $410 from $400 and maintained an “Overweight” rating. These calls imply meaningful upside and support investor confidence in Aon’s earnings and valuation. Wells Fargo analyst recommendation Cantor Fitzgerald analyst recommendation
• Positive Sentiment: Aon highlighted data centers and managing general agents (MGAs) as growth opportunities. These areas could expand demand for specialty insurance and risk-management services, providing potential longer-term revenue growth. Aon's Hofmann: Data centers and MGAs offer new avenues for growth
• Neutral Sentiment: UBS lowered its price target to $356 from $387 and kept a “Neutral” rating. Although the revised target remains above the recent trading level, the cut indicates more limited upside in UBS’s view. UBS Group analyst recommendation
• Neutral Sentiment: Aon’s quarterly dividend reached its record date at $0.820 per share, reinforcing the company’s shareholder-return profile, though the payment is unlikely to materially change near-term earnings expectations. Aon quarterly dividend record date
• Negative Sentiment: European windstorms Austen and Boelo are expected to produce hundreds of millions of dollars in insured losses. While this is primarily an industry event rather than a direct loss for Aon, elevated catastrophe activity could pressure insurance-market capacity and sentiment. European windstorms insured losses

AON Company Profile

Aon plc is a global professional services firm that helps organizations manage risk, make informed decisions and improve workforce outcomes. Its services span commercial risk, health, retirement and investments, and data and analytics.

The company provides insurance brokerage and risk-management services, including coverage placement, claims support, risk transfer and consulting. Through its reinsurance business, Aon also serves insurers and other organizations seeking to manage catastrophe, capital and underwriting risks.

Aon's human capital offerings include employee benefits consulting, retirement advisory services, talent and compensation consulting, and health and workforce solutions.

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