Evercore ISI analysts upgraded shares of Marsh & McLennan (NYSE:MMC) to Outperform from In Line in a note Thursday, raising the firm's price target on the stock to $199 from $195.
The analysts said the firm is lifting the stock based on EPS upside and more visibility.
"We now see 4-5% upside to consensus EPS with more visibility given a greater ability to leverage Centers of Excellence and a valuation that is below AJG and AON on '24 Cash EPS," wrote the analysts.
"MMC incurred many of the startup costs associated with establishing Centers of Excellence in '21 and '22 and is now turning to harvesting these & other efficiency gains which should become more apparent in '24."
In addition, they analysts said they believe there could be an upside to the $300 million in net savings from the company's restructuring plan that they said they think MMC will either let fall to the bottom line or reinvest it in growth. Regardless, they see both resulting in upside for the stock.
"The MMC stock has lagged AON & WTW over the last 12mo, which we believe sets MMC stock to Outperform," the analysts concluded.