Sterne Agee Upgrades March & McLennan to Buy

Sterne Agee is out with its report today on Marsh & McLennan MMC, upgrading MMC to Buy from Neutral. In its report, Sterne Agee writes, "We are upgrading the stock to Buy given: 1) significant balance sheet flexibility with meaningful free cash and low debt levels, 2) potential for further repurchase and/or M&A activity (levers not fully reflected in our estimates), 3) solid recent results demonstrating organic momentum and some margin improvement, 4) a stabilizing P&C rate environment, 5) strong franchise value in both the brokerage and consulting operations, and 6) valuation near historical lows." Sterne Agee has a $35 PT on MMC. Shares of MMC closed Friday at $28.27, down 1.22% from Thursday's close.