Aon’s Stock Price (NYSE: AON) Target Cut to $373

BMO Capital has revised the price target for Aon's stock (NYSE: AON) from $380 down to $373 while maintaining a Market Perform rating. Despite lowering its 2025 and 2026 EPS estimates based on anticipated lower revenue, BMO Capital projects that Aon can hit the lower end of its performance targets through ordinary earnings growth and the absence of recurring legal payments.

Aon plc's stock, traded on the New York Stock Exchange under the ticker symbol AON, experienced a 1.28% increase during yesterday's trading, closing at $374.88. The firm's market cap stands at approximately $81.07 billion, with a 52-week trading range of $268.06 to $395.33.

BMO Capital suggests that despite Aon's trading at a higher premium relative to its historical averages when compared to most brokers, the firm is poised to achieve consistent growth. Lower than expected revenue, however, prompted the adjustment to Aon's future earnings projections.

Dublin-based Aon plc operates within the Financial Services sector, specifically in Insurance Brokers. The company's substantial portfolio includes commercial risk solutions, health solutions, reinsurance services, and retirement and investment advising, among others. Revenues at Aon hit around $14.93 billion, with a net income to common shareholders recorded at approximately $2.44 billion. Investors are offered a dividend rate of $2.70 with a yield of 0.73%, set against a payout ratio of 22.09%. Further financial indicators display a trailing P/E ratio of 30.03 and a more forward-looking P/E of 19.11 .

Institutionally, insiders hold about 3.03% of Aon's shares, while institutions hold a notable 87.83%. The float stands at 209.42 million shares out of 216 million outstanding shares.

Including the review from BMO Capital, Aon presently holds an average price target of $389.08 and a consensus rating of “hold,” based on the views of 19 analyst opinions. Despite the recent adjustment, Aon stands as a formidable entity in the insurance brokerage industry and retains the capacity to leverage its market position and strategic initiatives for ongoing growth.

As investor sentiment digests BMO Capital's adjusted EPS estimates and alignments to Aon's price target, the firm's agility in a shifting legal expenses landscape and potential for revenue improvement will be pivotal in meeting performance aspirations and sustaining investor confidence in the near term .