Marsh gets boost from Citi analyst

The ratings have been raised to “buy,” from “hold,” and the target price has been upped to $33 per share, from $30.
JUL 08, 2008
Marsh & McLennan Cos. Inc. of New York has been upgraded by Citigroup Investment Research analyst Keith Walsh. The ratings on the company have been raised to “buy,” from “hold,” and he also raised his price target to $33 per share, from $30. New executives at the helm also have helped to boost the company’s ratings, particularly the January addition of Brian Duperreault, chief executive and president of the firm, he said. Matthew B. Bartley, executive vice president and finance chief of Marsh & McLennan, parted ways with the firm in June. Mr. Duperreault’s hiring, as well as that of Daniel Glaser, chief executive of insurance brokerage firm Marsh Inc. of New York, “have gone a long way to improving employee morale and [Wall] Street credibility,” Mr. Walsh said in his note to clients. The company is “in the early stages of being fixed,” as it recovers from its decline in 2007. Other factors behind the positive report include Marsh & McLennan’s margin expansion and a series of possible catalysts that could surprise Wall Street, including a formal restructuring program, an acquisition or larger share repurchase, enhanced earnings and cash flows, and possible asset sales, according to the note. Improvements in the first quarter, stemming from cutbacks of 150 employees and reduced discretionary spending, will aid the firm’s margin gains. Mr. Walsh predicts further slashes in staff over the next two years, as well as decreased pension expenses through the remaining three quarters. Citigroup Investment Research is the research unit of New York-based Citigroup Inc.

Latest News

Fintech bytes: Vestmark, NDEX, and Forms Logic partnerships sharpen RIA tools
Fintech bytes: Vestmark, NDEX, and Forms Logic partnerships sharpen RIA tools

First Trust models, Schwab-linked data tools and Orion transition tech headline a busy week for RIA wealthtech

Two LPL executives jump to competitors as 2026 comes to a close
Two LPL executives jump to competitors as 2026 comes to a close

The change in senior personnel occurs days after LPL Financial tapped a new head of recruiting.

Osaic names new CMO and Empowered Independence head
Osaic names new CMO and Empowered Independence head

Former PulteGroup and Citizens executives join the broker-dealer network after a year of senior leadership departures

RIA moves: Prospera lands $600M Cornerstone team in Rochester
RIA moves: Prospera lands $600M Cornerstone team in Rochester

Independent RIA Concurrent adds over $1B across six moves, while OnePoint BFG opens West Palm Beach with a $240M team

Creative Planning adds $2.2B fee-only RIA Rockbridge in Syracuse
Creative Planning adds $2.2B fee-only RIA Rockbridge in Syracuse

The mega-RIA keeps absorbing independent fiduciary firms as Cerulli data shows the fee-only segment losing asset share

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor