-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our 12-month target price by $8 to $200, valuing MRSH shares at 19.4x our 2026 adjusted EPS estimate of $10.33 (raised by $0.03), and at 18x our 2027 EPS estimate of $11.15 (unchanged). Our target multiple compares to MRSH's one-year average forward multiple of 19.7x and peer average of 16x. At current levels, we view the shares as fairly valued versus peer and historical averages. We note that while MRSH's Q1 revenue growth of 8% was in line with our forecast of 5% to 8% growth, results included a 3% positive currency impact and a 1% boost from acquisitions. Underlying revenue growth of 4% in Q1 is likely to be at the low end of peer averages. Also, we note MRSH shares trade at a premium to peers, but its margins have been under pressure and are lagging some peers. To that point, Q1 operating margins contracted to 23.1% from 28.4% a year ago. Weighing modest top-line growth and margin contraction with the shares' premium valuation to peers, we view the shares as fairy valued.