Stifel Nicolaus Reiterates Buy on MMC

Analysts at Stifel Nicolaus reiterated their “buy” rating on Marsh and McLennan (NYSE: MMC). The analysts have put a target price of $32 for MMC.

MMC reported earnings of $0.38, which was ahead of the consensus estimate of $0.37, but below the estimates of Stifel Nicolaus. When the earning results were added to Stifel Nicolaus’ model it moved EPS estimates for 2010 to $1.89 from $1.92. The analysts lowered estimates due to their underestimated expenses.

Marsh and McLennan did have a strong quarter, which was largely helped by the Risk and Insurance Services’ improvement to margins. Analysts were also pleased with MMC’s ability to create 4% organic growth from their Reinsurance brokerage.