An analyst upgraded insurance brokerage Marsh & McLennan Cos. late Monday, citing margin expansion and a new management, among other factors.
Citi Investment Research analyst Keith F. Walsh boosted his rating on the New York-based company to "Buy" from "Hold" and his price target to $33 from $30. The new target implies he expects shares to jump 23 percent above Monday's $26.84 close.
In January Brian Duperreault was named chief executive and president, and last December Daniel S. Glaser became head of Marsh Inc., the company's insurance brokerage business.
The hirings "have gone a long way to improving employee morale and (Wall) Street credibility," Walsh said in a note to clients.
Management should have some "low hanging fruit" to drive margins in the near term, he said.
The company has the ability to surprise Wall Street with a restructuring plan, acquisitions of share repurchases, enhanced earnings and cash flow, and asset sales, he said.
So far this year, shares have risen about 1 percent.
A company representative was not immediately available for comment.
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