Paul Harris, CFA
Marsh & McLennan
MMC-N
BUY
Sep 19, 2005
Has gone through a lot of problems in the last 6 months or so. Senior management has been let go and there is talk about people rigging their bidding for certain aspects. The component parts of their company are actually pretty good. New management has cleared up a lot of the issues and thinks there's a lot more upside in this company.
$112.32 is his target. Low volatility. Has long owned this and done well with it. Days of rigging bids and price fixing are long behind them. (Analysts’ price target is $93.94)
Insurance brokerage business is profitable, but technology will depress margins. Well run, but has benefited from PE expansion. Hard to see the upside. Great company, but rather fully priced.
Their reinsurance business increases when premiums increase. Also operate consulting businesses. Recently bought it. Expects double-digit returns over the cycle.
Benefiting from continued tight market conditions in insurance market, which (perversely) is bolstered by climate change. Consultancy side is a play on the labour market, which remains robust.
Your Watchlist
Add stocks to watchlist to monitor them daily and get important alerts.