UBS Warburg cut its estimates on insurance broker Aon Corp. (AOC). On Nov. 7, the company posted $0.37 Q3 EPS from operations.
Analyst Joanne Smith says she is surprised and disappointed that completion of the company's transformation plan has been delayed. She thinks it is even more disconcerting that management could not identify recurring from non-recurring expenses associated with September 11. Smith cut her $1.70 2001 EPS estimate to $1.47 and her $2.60 2002 forecast to $2.40. She also cut her $54 price target to $45. The analyst says the stock is trading at a 38% discount to its peers, and rates the shares strong buy.