Marsh & McLennan Companies Inc. (NYSE: MMC) saw its stock downgraded by BofA Securities from Neutral to Underperform on Monday, with the investment bank lowering its price target to $181.00 from $243.00. The downgrade comes as BofA cited a weaker outlook for organic growth and near-term challenges linked to softening property insurance rates.
According to BofA, Marsh & McLennan’s high PEG ratio of 7.39 indicates premium valuation relative to expected growth, and the firm does not anticipate any near-term catalysts to support stronger performance. It also revised its 2027 earnings per share (EPS) forecast downward to $10.50, below the consensus estimate of $11.14, noting that the company could miss market expectations as slower growth and reduced margins weigh on results. Despite these concerns, Marsh & McLennan continues to maintain a 2.02% dividend yield and a 55-year record of consistent dividend payments.
The downgrade follows a period of mixed market reactions to the company’s third-quarter 2025 earnings, which exceeded analyst expectations. Marsh & McLennan reported EPS of $1.85, compared to forecasts of $1.79, and revenue of $6.4 billion, surpassing projections of $6.34 billion. However, shares declined in pre-market trading as broader market pressures persisted.
Other analysts have also adjusted their outlooks. Keefe, Bruyette & Woods upgraded Marsh & McLennan from Underperform to Market Perform while reducing their price target from $209.00 to $191.00, citing more reasonable valuation levels. BMO Capital maintained its Market Perform rating but trimmed its price target to $208.00 from $222.00, referencing slower organic growth relative to peers.
In related company news, Marsh McLennan Agency (MMA) announced the acquisition of Hayden Wood Insurance Agency Inc., an independent agency based in Southborough, Massachusetts. Founded in 1946, Hayden Wood specializes in personal lines insurance, with particular expertise in collector auto and motorsports products. All employees, including President and Owner Morgan Duffy, will join MMA and continue operating from the Southborough office. Terms of the acquisition were not disclosed.
Pete Walther, President and CEO of MMA’s Private Client Services division, stated that Hayden Wood’s expertise aligns with MMA’s commitment to providing customized coverage for high-net-worth clients. Duffy added that joining MMA will enable the agency to enhance service delivery and deepen expertise in the evolving personal lines insurance market.
Marsh McLennan Agency operates as a business of Marsh, providing insurance, employee benefits, retirement, and private client solutions across the U.S. and Canada. Its parent company, Marsh & McLennan, is a global leader in risk, strategy, and people, employing more than 90,000 colleagues across four businesses: Marsh, Guy Carpenter, Mercer, and Oliver Wyman, with annual revenue exceeding $24 billion.
Additionally, Marsh & McLennan recently formed a strategic knowledge partnership with Bloomberg Media, aiming to deliver thought leadership content across several major events.
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