BofA Securities downgraded Marsh & McLennan Cos. (NYSE: MMC) to Underperform from Neutral and lowered its price target to $181 from $243, citing a weaker outlook for organic growth and near-term headwinds in the property insurance market.
The firm said it expects slower organic revenue expansion as property rate softness and broader economic uncertainty weigh on performance. It added that near-term catalysts for growth appear limited and that margin expansion may be more muted than previously anticipated.
BofA also revised down its earnings projections, now expecting 2027 EPS of $10.50, below the current consensus estimate of $11.14. The firm warned that Marsh & McLennan could miss consensus expectations as slower growth and reduced profitability weigh on results in the coming quarters.
