Aon Faces Challenges With Integration Risks And Slow Growth: BofA Downgrades Stock
Portfolio Pulse from Lekha Gupta
BofA Securities analyst Grace Carter downgraded Aon plc (NYSE:AON) to Underperform from Neutral, citing integration risks from a $13.4 billion acquisition, below-average organic growth, and management changes. The price target was cut from $345 to $306. Aon's recent performance has lagged behind peers, and its Q1 FY24 earnings missed expectations. Investors can gain exposure to Aon via Litman Gregory Funds Trust Polen Capital International Growth ETF (NYSE:PCIG) and Hennessy Stance ESG ETF (NYSE:STNC).
May 22, 2024 | 6:12 pm
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NEGATIVE IMPACT
BofA Securities downgraded Aon plc to Underperform from Neutral, citing integration risks from a $13.4 billion acquisition, below-average organic growth, and management changes. The price target was cut from $345 to $306.
The downgrade and reduced price target are likely to negatively impact Aon's stock price in the short term. The cited reasons include integration risks, below-average organic growth, and management changes, which are significant concerns for investors.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Investors can gain exposure to Aon via Litman Gregory Funds Trust Polen Capital International Growth ETF (NYSE:PCIG).
PCIG holds Aon shares, and the downgrade of Aon could negatively impact the ETF's performance in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Investors can gain exposure to Aon via Hennessy Stance ESG ETF (NYSE:STNC).
STNC holds Aon shares, and the downgrade of Aon could negatively impact the ETF's performance in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50