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Research Alert: CFRA Keeps Hold Opinion On Shares Of Aon Plc
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Research Alert: CFRA Keeps Hold Opinion On Shares Of Aon Plc
May 25, 2025 10:58 PM

02:25 PM EDT, 04/30/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We keep our 12-month target of $390, valuing AON shares at 20.4x our 2026 adjusted EPS estimate of $19.10 (cut today by $0.40) and at 23x our 2025 EPS estimate of $17.02 (also lowered today by $0.33), versus the shares' three-year average forward multiple of 21x and a peer average of 24.5x, which includes some firms growing faster than AON. Aon posted Q1 adjusted EPS of $5.67 versus $5.66, lagging our $6.20 EPS estimate and the $6.03 consensus view, as an acquisition driven 16% rise in Q1 revenues (5% organic growth) was offset by an operating margin contraction (to 30.9% from 36.0%. Results reflected 7% higher Risk Capital revenues and a 40% rise in Human Capital revenues amid the acquisition of NFP. We forecast total revenue growth of 6% to 10% in 2025, with organic revenue growth of 4% to 6%. Weighing contributions from acquisitions with margin pressure (despite a several year long restructuring program), and the potential for slowing revenue growth, we view the shares as fairly valued, but worth holding.

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