UPDATE: Miller Tabak Reiterates Buy Rating, Raises PT on Marsh & McLennan

In a report published Monday, Miller Tabak + Co. reiterated its Buy rating on Marsh & McLennan Companies (NYSE: MMC), and raised its price target from $34.98 to $35.07.

Miller Tabak noted, “We now believe MMC has hit on a sustainable formula for a long-term expansion of its stock's valuation: execute the business plan so as to drive steady revenue growth and modest year/year increases in operating profit margins, as the resulting steady increases in earnings per share rebuild investor confidence in MMC's business model. This formula can work only so long as MMC is able to execute on its plan, but so far management has given every indication that it has the flexibility and acumen to make the formula pay off for shareholders. When we consider that operating budget investments in each part of MMC's franchise are subjected to rigorous cost/benefit standards, that MMC has a wide choice of markets served and service offerings over which to exercise investment discretion, and that the expense budget itself is big enough to respond to deliberate changes in investment spending emphases, we believe MMC's plan -- to drive higher earnings by making its spending pay off in higher profits on the marginal dollar spent or invested -- is likely to succeed in all but the most extreme cyclical economic conditions."

Marsh & McLennan Companies closed on Friday at $34.02.