Marsh & McLennan shares slide after BofA cuts to Underperform on valuation concerns
Jan. 03, 2022 11:09 AM ETMarsh & McLennan Companies, Inc. (MMC)By: Max Gottlich, SA News Editor
- Insurance broker Marsh & McLennan (NYSE:MMC) stock slips nearly 3% after Bank of America analyst Joshua Shanker downgrades MMC to Underperform from Neutral.
- Shanker believes that MMC's valuation is peaking, which presents the potential for further downside risk, Shanker writes in a note to clients.
- "The suppression of T&E (travel & entertainment) expenditures during the pandemic should cause 2022 EPS to be inflated (particularly in 1H22 due to the COVID Omicron variant's impact in our revised EPS forecast)."
- The Underperform rating diverges from the Neutral Quant Rating, with the worst factor grade in Valuation, and the Bullish Wall Street Analyst Rating (4 Very Bullish, 2 Bullish, 9 Neutral, 1 Very Bullish).
- Previously, (Nov. 19) Marsh & McLennan got initiated with a Buy at Jefferies.