CFRA Upgrades Willis Towers Watson (WTW) to Buy

CFRA analyst Catherine Seifert upgraded Willis Towers Watson (NASDAQ: WTW) from Hold to Buy with a price target of $315.00 (from $275.00).

The analyst comments "We lift our 12-month target price by $40 to $315, valuing the shares at 15x our newly initiated 2026 adjusted EPS estimate of $20.95 and at 17x our 2025 EPS estimate of $18.45 (upped by $0.55) vs. the three-year average forward multiple of 16x and a peer average of 22x. We raise our 2024 EPS estimate by $0.30 to $16.50 after WTW posted Q2 EPS of $2.55 vs. $2.05, beating our $2.35 EPS estimate and the $2.32 consensus view on 5% higher revenues (in line with our 4%-7% growth forecast). There was also a 240-bp expansion in operating margins to 17% as WTW is getting traction in its restructuring and guiding estimates higher. This follows its failed merger with Aon plc (AON 299 ***), which left WTW at a strategic disadvantage. We expect WTW to produce revenue growth of 4%-7% and adjusted operating margins of 23.0%-23.5% on an upwardly revised estimate of annual cost savings of $450M (from $425M). We think these improved metrics will provide the shares with a catalyst to close their valuation gap with peers."

For an analyst ratings summary and ratings history on Willis Towers Watson click here. For more ratings news on Willis Towers Watson click here.

Shares of Willis Towers Watson closed at $277.60 yesterday.

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