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Research Alert: CFRA Reiterates Buy Recommendation On Shares Of Aon Plc

· 02/05/2021 06:07

11:05 AM EST, 02/05/2021 (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 raise our 12-month target price by $20, to $250, or 22.9x our 2021 EPS estimate of $10.90 and 21x our 2022 EPS estimate of $11.90 (raised by $0.05 today), versus AON's one -year average forward multiple of 19.6x, a peer average of 23x. Q4 EPS of $2.62 versus $2.53 topped our $2.50 EPS estimate,and the $2.46 consensus forecast on 3% revenue growth (the upper end of our 1%-3% forecast), a 5% drop in expenses and 2.6% fewer shares amid buybacks. The $170M drop in Q4 travel and expense and restructuring costs more than offset merger related costs of $44M. Full year EPS of $9.81 versus $9.17 exceeded our $9.67 EPS estimate, the $9.64 consensus forecast on similar drivers. We see firmer property-casualty insurance rates and an increase in demand for coverage amid an economy recovery and a resumption of discretion consulting projects driving revenue growth up to 4%- 6% in 2021. AON remains on track to compete its accretive acquisition of Willis Tower Watson (WLTW 219 ****), enhancing its competitive position.