J.P. Morgan Leaves Aon Overweight Rating Unchanged (AON)

J.P. Morgan left its Aon AON Overweight rating unchanged in a research report published today. In the report, J.P. Morgan states, "Aon Corp. OW reported 4Q adjusted operating EPS of $0.84 versus our $0.75 estimate and consensus of $0.82. The upside in the quarter reflects a number of factors including: (1) stronger organic growth in Risk Solutions (formerly Risk & Insurance); (2) stronger margins in both the Risk Solutions and HR Solutions (formerly Consulting) segments; (3) share repurchases of $150 million, which we did not expect until the second half of 2011; and (4) a slightly lower tax rate than we anticipated (although 4Q tax rate is still above run-rate 2011 levels). More specifically, organic growth in the quarter was slightly stronger (+2% vs. -1.0%E) due to better brokerage growth (+3% vs. -1%E), while consulting was weaker at (0% vs. +2%). Adjusted consolidated operating margins (17.5% vs. 16.5%E) were stronger as were pretax margins (15.4% vs. 14.5%E), helped by both segments." Shares of Aon were at $48.02 at the time of posting, up 4.03% from Thursday's market close.