Aon plc (NYSE: AON) is a professional services firm providing a broad range of risk, retirement, and health solutions. The company has a strong presence in the international market and has established itself as a trusted advisor and service provider to a diverse clientele across various industries.
Founded and headquartered in London, Aon has evolved from its origins as an insurance brokerage firm to become a provider of risk management, insurance and reinsurance brokerage, and human resource solutions.
The professional services and management consulting firm has around 50,000 employees across 120 countries. Aon’s operations encompass risk solutions, retirement solutions, health solutions, data and analytics, and more.
Aon EPS and Revenue Breakdown 2020-2023
Aon has demonstrated a history of robust financial performance and strategic investments, making it an attractive choice for investors seeking exposure to the professional services industry. The company’s shares are publicly traded on the New York Stock Exchange under the symbol AON. Its shares are part of the S&P 500 index. Aon’s current CEO is Gregory Case.
Aon Share Price & Dividend Yield
Since the beginning of 2023, the Aon share price has ranged, failing to maintain any push above $345 per share. There was a 6% dip in December 2023, but the stock has now recovered those losses and more. However, whether its latest move higher will break above the resistance is another question.
Aon does pay dividends to shareholders, with its current dividend yield at 0.77%.
Aon Share Price Forecast
In recent months, various analysts have raised their price target for AON shares. In April 2024, JPMorgan lifted the price target on Aon to $353 from $318, keeping an Overweight rating on the shares. Analysts at the investment bank said the outlook for business trends in the property and casualty sector is upbeat, although it does feel bullish sentiment and relatively full valuation levels will limit upside heading into the Q1 reports. Even so, JPMorgan pointed to Aon’s disciplined pricing and defensive risk profile as positives, despite margins and growth expectations seeming “optimistic” and valuations being deemed “not attractive.”
Meanwhile, in late February, TD Cowen increased its price target on Aon to $413 from $403, maintaining an Outperform rating on the stock. The bank said it met with Aon’s management, who reaffirmed their confidence. TD Cowen believes that as sizable gains from cost savings and NFP deal accretion become apparent in 2026, AON’s valuation discount will likely close.
RBC Capital is less bullish on the stock. The firm cut its Aon price target to $325 from $342 in a February note, keeping a Sector Perform rating on the shares following its Q4 earnings miss. RBC said at the time that Aon’s organic growth was solid, but the growth in its Commercial Solutions unit’s lagged other units.
Our View: Aon shares have been up and down in recent years, suggesting the company at current levels may be well valued. Nevertheless, if you are considering the stock, it is important to consider any potential headwinds.
Who Should Buy Aon Shares
When considering whether to invest in Aon shares, it is important to evaluate various factors that suit specific types of investors. For example, some investors will prefer dividend stocks, while others will look for high-growth stocks. Here are some key considerations to take into account:
Fitch revised its outlook for Aon to Negative following its acquisition of NFP Corporation, with the firm saying it reflects heightened risk from meaningfully higher leverage. In addition, it has previously been noted that Aon uses a high amount of debt. Therefore, investors with a higher risk tolerance may find Aon shares more suitable for their portfolio.
Aon has a track record of paying dividends, making it an appealing option for investors seeking regular income from their investments.
The investment horizon, or the length of time an investor intends to hold Aon shares, is an important consideration. Investors with a long-term outlook and confidence in Aon’s strategic direction may find the stock aligns with their investment goals.
