Raymond James upgraded Marsh (NYSE:MRSH) to a Strong Buy rating from Outperform on Tuesday and simultaneously reduced its 12-month price target to $225.00 from $240.00. At the time of the note, Marsh shares were trading at $174.06, close to their 52-week low of $170.37.
The analyst group highlighted that Marsh’s stock has declined roughly 17% over the last six months and presently trades at approximately 17 times the 2026 estimated earnings per share. Data from InvestingPro shows a six-month price return decline of 15.19%.
Raymond James described a gap between the equity market’s performance and relatively stable credit pricing for Marsh, characterizing the move lower in the share price as a valuation reset driven by thematic rotation in the market rather than a sign of weakening near-term operating fundamentals. According to InvestingPro’s Fair Value model, the firm concluded Marsh looks undervalued at current levels.
The upgrade was supported by several attributes the analyst flagged as strengths: a high-quality earnings profile, a history of operating margin expansion, and what the firm described as the cleanest credit signal within the broker peer group. Raymond James also pointed to Marsh’s scale, strong brand recognition, and durable client relationships as evidence of the company’s leading position across its Risk & Insurance Services and Consulting businesses.
The note emphasized that Marsh’s revenue composition and operating model leave it with relatively limited exposure to ongoing litigation dynamics connected to Howden, which Raymond James said are centered in the U.S. middle-market retail channel. On credit measures, Marsh showed the lowest absolute credit default swap spread among the large-cap brokers at about 62 basis points, compared with an average of roughly 110 basis points for the peer set.
Management guidance and corporate performance metrics were also cited in the upgrade rationale. Marsh’s management has guided to mid single digit organic growth and the company is pursuing what would be its 19th consecutive year of operating margin expansion. Raymond James attributed this progression in part to the company’s exposure to digital infrastructure build-outs, client investments tied to artificial intelligence, and productivity gains from the Thrive initiative.
The brokerage note placed the operating performance in the context of Marsh’s long-term shareholder returns profile. The company has raised its dividend for 16 straight years and maintained dividend payments for 56 consecutive years. At current levels the dividend yield stands at 2.07%, with dividend growth of 10.43% in the last twelve months.
For investors seeking additional valuation and financial detail, the firm referenced InvestingPro’s Pro Research Report for deeper analysis and metrics.
Other analyst actions and corporate developments were detailed alongside Raymond James’ view. Marsh McLennan Agency announced the acquisition of Robinson & Son, LLC, a New York-based insurance agency that specializes in maritime insurance; the financial terms of that transaction were not disclosed.
Goldman Sachs raised its price target for Marsh to $203 and kept a Neutral rating following the company’s fourth-quarter 2025 results. Goldman’s adjustment reflects modest improvements in Marsh’s organic growth and operating margins and incorporates modest increases in projected earnings per share for 2026 through 2028.
Mizuho also lifted its price target to $213 while maintaining an Outperform rating. That firm cited higher earnings estimates for 2026 and 2027, which it said aligned with the highest estimates on Wall Street.
On the management front, Marsh announced the promotion of Michael Lewis to President of Marsh Risk Canada effective April 1. In his new role he will be responsible for strategic development and the execution of the company’s commercial strategy in Canada.
Finally, BMO Capital provided a broader defense of insurance broker stocks, including Marsh, arguing that recent market weakness attributed to concerns over artificial intelligence appears to have limited near-term impact on the sector.