BUZZ - Raymond James upgrades Aon’s rating to “Market Perform” based on valuation

November 2 - ** Raymond James upgraded insurance broker Aon (AON.N) from "Underperform" to "Market Perform", as its valuation relative to rival Marsh (MRSH.N) has returned to normal levels.

** The brokerage said the current valuation appropriately reflects the short-term impact of high leverage from the USI acquisition, earnings per share dilution, and constrained capital allocation.

** In August, Aon (link) acquired rival USI Insurance Services for $17 billion, strengthening its presence in the fast-growing U.S. middle market insurance sector.

** Of 23 brokerages, 13 rate AON as "Buy" or higher, 8 as "Hold", and 2 as "Sell" or lower; the median target price is $363.50 — LSEG data.

** As of the previous trading session's close, AON shares were down 8.8% year-to-date, while MRSH shares were up 8%.

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