Aon Plc (AON.N): USI transaction an opportunity to buy growth upside at a discounted multiple/resuming coverage with Buy rating

We are resuming coverage of Aon after a period of Rating Suspended with a Buy-rating and $435 target. The unexpected acquisition of USI, combined with positioning (Aon was a consensus long with ST investors), adversely impacted shares (down ~14% post deal announcement versus ~5% for peers). While many investors see a "rich" transaction multiple, we see a new investment case and catalyst path. Specifically, upside to already industry-leading organic growth and acquisition-related financial targets. Shares should re-rate as the benefits of the transaction highlight value and valuation multiples are not the same. We believe the company's $321 million gross revenue synergy target is likely to prove conservative;