On Friday, Willis Towers Watson (NASDAQ:WTW) received an optimistic update from Roth/MKM as the firm's analyst increased the price target on the company's shares to $315 from the previous $300, while reiterating a Buy rating. This adjustment follows the announcement of Willis Towers Watson's second-quarter earnings, which surpassed both the consensus estimate and the firm's own projections.
The company reported an adjusted earnings per share (EPS) of $2.55, which exceeded the consensus estimate of $2.32 and the analyst's expectation of $2.18. Organic growth for the quarter was reported at 6%, aligning with market predictions. In response to these results, Willis Towers Watson has revised its financial outlook upwards, raising the lower end of the guidance for adjusted operating margin and adjusted EPS. Additionally, the company has increased its target for annual cost savings.
The rationale behind the raised price target to $315 is grounded in a valuation multiple of approximately 16.8 times the expected EPS for the year 2025. The analyst underscored Willis Towers Watson's position as the most valuable among property and casualty (P&C) brokers, which contributed to the decision to maintain a Buy rating for the stock.
In other recent news, Willis Towers Watson has been the subject of several significant updates. Evercore ISI raised its price target for the company to $319, citing robust performance in organic growth, margins, and free cash flow.
TD Cowen also maintained a positive outlook on Willis Towers Watson, reiterating a Buy rating with a price target of $329.00. This followed a conversation with the company's CFO, Andrew Krasner, who expressed confidence in achieving the 2024 guidance.
BofA Securities upgraded its stance on Willis Towers Watson, moving from Underperform to Neutral, citing operational improvements. Keefe, Bruyette & Woods and CFRA adjusted their price targets for Willis Towers Watson to $311 and $275 respectively.
The company also announced a unique partnership with Ukrainian insurer VUSO, aiming to cover cargo and war-on-land risks in Ukraine.
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