UPDATE: Keefe Bruyette & Woods Downgrades Aon to Perform

Keefe Bruyette & Woods lowers its rating on Aon (NYSE: AON) to Perform from Outperform as it lowers EPS estimates in Europe headwinds and near-term outlook in HR Solutions. Price target is lowered to $52.

Keefe Bruyette & Woods notes, "AON's ROCK was [$0.82, $0.97, $0.96, $0.99] benefiting $0.01 from F/X and $0.02-$0.03 from a low tax rate. Brokerage revenues were up 3% and the margin was 21.8%, both near our estimate. Consulting grew 3% but the margin of 12.4% missed our 14.0%."

AON closed at $49.37 a share yesterday.